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Mentioned 1.0% envelope (drawn........>

EURO-STERLING
MNI (London)
EURO-STERLING: Mentioned 1.0% envelope (drawn around the 10-dma) managed to keep
rate contained Monday, cross touched a high of Gbp0.8827 just below the envelope
top at Gbp0.8833. Rate then reversed, touched a low of Gbp0.8765 ahead of the
month-end London fix before it edged back to the Gbp0.8790 area, closing the
day/month around Gbp0.8775. Consolidation in Asia saw rate contained within a
tight range of Gbp0.8769-78. There is a chance of further month-end demand to
emerge in this new month which could keep rate buoyed. However, support remains
at Gbp0.8765, a break to expose the 10-dma that today comes through at
Gbp0.8740. Resistance remains around Gbp0.8790, a break of Gbp0.8840 to expose
Monday's high of Gbp0.8827 ahead of the envelope top, which today has moved up
to Gbp0.8840. Most European centres closed for the May Day holiday. UK
Manufacturing PMI at 0830GMT provides the morning focus. 
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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