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Holds outside of the base of its......>

EURO-STERLING
MNI (London)
EURO-STERLING: Holds outside of the base of its 1.0% 10-dma envelope
(Gbp0.8326), trade through Asia confined to a tight Gbp0.8303/16 range. As
mentioned in recent bullets, rate tends not to like being outside the 1.0%
envelope for long, though the envelope will move lower in line with the 10-dma
as rate holds these lower levels. Whilst rate holds below its 10-dma (Gbp0.8411)
it keeps the underlying tone bearish. Support seen at the earlier low of
Gbp0.8303, strengthening toward the YTD low of Gbp0.8295(Feb13). Break of
Gbp0.8290 to expose the base of the 2.0% 10-dma at Gbp0.8242. A break back into
the 1.0% envelope could target the 10-dma. 
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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