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Friday's corrective pullback..........>

MNI (London)
EURO-STERLING: Friday's corrective pullback extended through the base of the
1.0% 10-dma envelope (Gbp0.9136) before it posted a low of Gbp0.9090, holding
just shy of retesting its Jul31 low of Gbp0.9089. Rate recovered to Gbp0.9148
ahead of Friday's 1600BST fix before it settled around Gbp0.9130 into the close.
Early consolidation in Asia before rate began to drift lower, touching an
intraday low of Gbp0.9112 into early Europe. Sterling has retained an underlying
buoyant tone, seen through Friday trade, though still holds low levels as
potential Brexit no-deal weighs. Cross continues to hold below the base of its
1.0% envelope (current Gbp0.9136) and keeps bearish tone in place. Support
remains at the Gbp0.9090/89 area, a break here to expose the base of the 2.0%
envelope at Gbp0.9043. Rate tends not to like to hold outside of its 1.0%
envelope for too long, with moves to test the 2.0% envelope parameters fairly
rare. If rate moves back inside the 1.0% it will open a move back toward the
10-dma at Gbp0.9217.   
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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