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Extended its recovery off its PMI.....>

EURO-STERLING
MNI (London)
EURO-STERLING: Extended its recovery off its PMI react low of Gbp0.8388(Jan24)
to Gbp0.8478 Tuesday, the added lift suggested to have been provided by
month-end demand hedging ahead of Thursday's BOE MPC rate announcement (live
meeting with chance for a rate cut). Despite the move up the rate failed to push
above its technically key 10-dma, which by time had moved up to Gbp0.8483,
keeping an underlying bearish feel in place. Rate eased to Gbp0.8460 into the
close. An early lift to Gbp0.8466 in early Asia proved short lived before rate
drifted off to Gbp0.8456 where it was seen meeting some support. The 10-dma has
eased to a current level of Gbp0.8473 and remains key to next direction. While
below leaves exposed the base of its 1.0% 10-dma envelope at Gbp0.8388(Jan24
low) with interim support noted at Gbp0.8450, Gbp0.8410/00. Resistance
Gbp0.8473/79 ahead of Gbp0.8500. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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