Key 10-dma Continues to Cap Upside Progress

Cross met support at the base of its 1.0% 10-dma envelope on Jul31 and Aug3, the eventual failure to break below prompted a recovery but this move has so far been capped by its key technical 10-dma(currently coming through at Gbp0.9035). Whilst rate holds below this line seen keeping the recent underlying bearish tone in place, as well leaving potential for another move toward the base of the envelope (current Gbp0.8945), though Gbp0.8980 support needs to be negotiated first. A break and clear above to negate this outlook(a close above to confirm) and open a move back toward Gbp0.9060 ahead of Gbp0.9080, with the top of the 1.0% 10-dma currently coming through at Gbp0.9125.