### POV: EURGBP touched 9-month.......>

EURO-STERLING: ### POV: EURGBP touched 9-month lows of 0.8668 on initial react

to the BoE rate hike split. The MNI FX Technical Signal Monitor points towards a

clean sweep of bullish GBP signals.

- EURGBP has now failed to break the previous day's high for 11 days in a row

adding to the bearish sentiment.

- Despite the BoE cutting its GDP expectations to 0.3% on the recent poor

weather, the affect is only expected to be temporary. MNI Pinch now prices in a

May hike at 88%, with a second hike in November at 58%.

- EUR/GBP 1m Risk Reversals have dropped for 10 consecutive sessions and are

approaching the late February low, which would mark the most bullish sentiment

toward GBP against the EUR in options markets since September last year.

- After 6 months of trading 0.87-0.90 we could be in for a new 300 point trading

range of 0.84-0.87 if we see a break of 0.8650, which holds technical support

from the base of the mid-term trend line and 100-week ma.

RISK - With the UK calendar quiet next week, investors may look to take profit

opening the risk to a short squeeze.