Having corrected back from............>

EURO-STERLING: Having corrected back from Tuesday's high of Gbp0.8863 to

Gbp0.8708, as well as easing below its 10-dma, currently coming through at

Gbp0.8730, the rate is holding fairly close to that line and not seen providing

any directional impetus at moment. Sterling took a knock from release of weaker

than forecast Retail Sales, the cross nudging up to Gbp0.8732 but has quickly

reversed down to Gbp0.8715 as the EUR comes under general pressure. If rate can

maintain the move below the 10-dma line it exposes the base of its 1.0% 10-dma

envelope, currently coming through at Gbp0.8643. 

- MNI TECHS: For bearish theme to be cemented, cross needs to clear support at

Gbp0.8682 to expose Gbp0.8621(Mar5 low) again. Key resistance remains

Gbp0.8865(Apr7 high) which represents a short-term hurdle for bulls. A break is

required to suggest scope for a stronger recovery, opening Gbp0.8911(Apr1 high)

and potentially beyond.