###POV: BREXIT EUPHORIA LOOKS.........>

EURO-STERLING: ###POV: BREXIT EUPHORIA LOOKS STRETCHED

-EUR/GBP has fallen 8 of the last 10 trading sessions, with GBP rallying on

renewed hopes that the UK will strike a withdrawal deal (and a subsequent Brexit

agreement). The optimism, however, may be misplaced. Significant gaps remain

between the EU's "Canada+++" proposal and a deal respecting the UK's red lines

(no regulatory border between N. Ireland and British Isles).

-While recent reports suggest the UK could make concessions on this, Theresa May

runs the risk of coming up against the DUP - the very party that props up their

majority in Parliament. With the Labour Party likely to vote down any deal the

government propose, the DUP votes must be kept on side. The tone of the

conversation may have changed, but the details are yet to shift materially. 

-The most profitable EUR/GBP trading strategy over the past 12 months, the

Kelner Band strategy, will recommend closing its current winning EUR/GBP short

trade and switching to a long signal on a close below the lower Kelner Band of

Gbp0.8847 today.