Probed back above the topside of......>

EURO-STERLING: Probed back above the topside of its 2.0% 10-dma envelope

Thursday(Gbp0.8893), closing the day above which was seen keeping the underlying

bullish tone in place. Rate again edged above the envelope in Asian trade (by

time has moved up to Gbp0.8922) to a fresh YTD high of Gbp0.8940 before momentum

faltered which has allowed the cross to drop back to Gbp0.8880 at writing, and

back within its 2.0% envelope. However, while rate holds outside of its 1.0%

envelope, currently Gbp0.8835 keeps upside in focus, a break below its 10-dma of

Gbp0.8748 needed to negate. MNI Techs note that the late Feb-early Mar break

higher through Gbp0.8596(Jan 14 high) confirmed an important swing in price that

signalled a potential reversal. The cross last week held above this breakout

level, a positive development and the subsequent rally confirms a bullish theme.

Trend conditions are in overbought territory but not proving to be a threat to

bulls just yet. The focus is on Gbp0.9020 next.