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GBP's decline is triggering further........>

STERLING
STERLING: GBP's decline is triggering further bearish technical signals, turning
the medium term picture increasingly bearish. The break below the 100-dma at
1.3870 this morning is the latest bearish signal, and a close below here will
highlight GBP's medium term vulnerability. Focus is now on the 1.3712 March low
and the medium term pivotal point at 1.3657. Medium term momentum indictors are
still trending lower and remain some way from oversold territory, consistent
with further downside potential. However, intra-day momentum indicators suggest
a very near-term overextended condition is developing, but corrective rebounds
should remain limited to the 1.3854 level, keeping the bearish picture in place.

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