Positive reports suggesting UK/EU.....>

EURO-STERLING: Positive reports suggesting UK/EU edging closer to a Brexit deal

keeps sterling buoyed in Europe with EUR/GBP able to extend its recent easing to

a low of Gbp0.8731. Move again takes the cross outside of its relevant 1.0%

10-dma envelope, which currently comes through at Gbp0.8745. Rate tends not to

like to be outside for too long but with ongoing positive Brexit news this

should prevent a sharp snap back inside which usually follows moves like this.

Being a short term moving average the 10-dma is moving lower with the rate,

which will allow the envelope to also ease and play catch up with the rate. Next

technical support seen down at Gbp0.8718(Jun15 low). Resistance remains at the

earlier Asian high of Gbp0.8750.