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Modest GBP strength on the back of the.....>

STERLING
STERLING: Modest GBP strength on the back of the BBG sources headlines re:
Labour & SNP looking at a late October election have pared.
- Cable last unch. at $1.2335, a move through yesterday's high ($1.2354) would
have bulls looking to the July 17 low at $1.2382, while bears need a break back
below the 50-DMA ($1.2302 today) to reignite the downside impetus.
- EUR/GBP is little changed, sitting just below GBP0.8950. Bears need a
convincing break below the nearby July 26 low at GBP0.8946 to open the way to
the 50% retracement of the May 6 - Aug 12 rally/Jul 25 low at GBP0.8908/8892.
Bulls need to reclaim GBP0.9000 to allow them to set their sights on GBP0.9086,
the Sep 4 high.
- Political developments remain front and centre ahead of the parliamentary
suspension, which is set to go into effect next week.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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