*** POV - Sterling was given a........>

EURO-STERLING: *** POV - Sterling was given a boost overnight as traders reacted

to a press report that the UK Government may propose to the EU that the UK is

prepared to stay in the customs union beyond 2021 due to technology issues

linked to the Irish border. EUR/GBP was given an added shove lower on the react,

the rate trading to a low of Gbp0.87155 before it recovered to Gbp0.8728 into

Europe. However, fresh downside pressure emerged into Europe and has pressed

rate back toward that earlier low. Support next seen at Gbp0.8705(61.8%

Gbp0.8620-0.8843) ahead of the key 1.0% envelope base which today has moved down

to Gbp0.8689. As has been noted in recent bullets EUR/GBP has been respecting

the 1.0% envelope 10-dma parameters. The envelope does not provide

support/resistance as such but rate often reverses away once these levels have

been touched, and tends to move back toward its 10-dma, which today comes in at

Gbp0.8777.