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Rate broke back into its 2.0%.........>

EURO-STERLING
MNI (London)
EURO-STERLING: Rate broke back into its 2.0% 10-dma envelope Wednesday, as the
recent recovery rally eased, but so far remains outside of its tighter 1.0%
envelope (topside currently Gbp0.8629). This corrective easing has eased the
recent bullish outlook, though a move back below Monday's Gbp0.8595 low, and its
10-dma (current Gbp0.8544), seen needed to negate. Rate met decent resistance
into the Gbp0.8745 level(Tuesday/Wednesday) before turning lower, the rate's
upside momentum fading as it struggled to move outside of its 3.0% 10-dma
envelope (current Gbp0.8800). BOE speakers Wednesday gave vague clues on policy
responses, which along with overnight comments from EU Chief Trade Negotiator
Hogan that talks with the UK had got off to a good start, helped to rekindle
demand for sterling. A break back outside of the 2.0% envelope (current
Gbp0.8714) expected to reignite the recent bullish outlook, with MNI Techs still
seeing upside potential toward Gbp0.9000, Gbp0.9300, highlighting initial
resistance at Gbp0.8801(50.0% retracement of the Aug - Dec downleg).
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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