Recovery Fails to Move Above the 10-dma

Thursday's bounce away from the base of the 1.0% 10-dma envelope (current Gbp0.8851) touched a high of Gbp0.8935 but failed to bring pressure to bear on the technically key 10-dma level (current Gbp0.8940). Whilst rate holds below this latter level seen keeping the underlying tone negative, a break to counter this outlook and could turn it positive if rate can clear higher.
MNI Techs: EURGBP maintains a bearish theme despite yesterday's recovery. This week, the cross trade to a low just ahead of 0.8864, Jun 9 low and the 61.8% Fibonacci retracement of the Apr 30 - Jun 29 rally. A breach of this level would reinforce the current bearish theme and open 0.8830, May 15 low. On the upside, initial resistance is seen at 0.8938, Jul 10 low and a recent breakout level. Firmer resistance resides at 0.8975, Aug 28 high.