GBPUSD touched $1.2866 yesterday, its......>

STERLING: GBPUSD touched $1.2866 yesterday, its lowest levels since mid-Feb. The

minor dollar retracement saw cable briefly squeeze above $1.2900, before fading

at the close. Light volumes overnight has seen GBPUSD reclaim the 1.29 handle

and holds toward the peak of its narrow 20 pip range.

- This brings the 100-hma & Mar 11 low back into view at $1.2942/49, with bulls

targeting a break and close above the 100 & 200-dma's at $1.2964/61 to change

the outlook.

- EURGBP rests on 55-dma support at Gbp0.8624 with bears looking for a close

below Gbp0.8600 to extend the downtrend.

- GBPJPY bounced off the Y143.75/80 level yesterday which is now growing in

importance having registered a series of previous lows. Rate extended the

recovery to Y144.24 with topside focus on a close above the 200-dma at Y144.53.

- CBI trends the main highlight today at 1000GMT. March's figure for CBI

industrial order books decreased to 1 after a sharp increase in February. Price

intentions registered at 7 in March.