Recovery off the Mar22 low of.........>

EURO-STERLING: Recovery off the Mar22 low of Gbp0.8668(seen on react to the

hawkish MPC vote split) saw a high of Gbp0.8754 before it eased back to

Gbp0.8710. The oft reported 1.0% envelope, drawn around the 10-dma, came in at

Gbp0.8710 on Friday and rate edged away from this level, touched Gbp0.8746 ahead

of the close. Consolidation in Asia as rate was confined to a tight GBp0.8727-46

range. The 1.0% envelope base today has moved down to Gbp0.8697. Sterling

remains generally buoyant, helped by Friday's comments from MPC Vlieghe (one of

the more dovish members of the MPC, discussed Friday increasing likelihood MPC

could hike 3 more times over next few years), aiding cable's hold on the $1.41

handle, but with Eur/Usd also holding firm seen countering sterling strength

against the single currency. Support noted at Gbp0.8710/00, Gbp0.8695/85 ahead

of recent low of Gbp0.8668(Mar22). Traders note that the 100-wma comes through

close behind at Gbp0.8655. Resistance Gbp0.8750/60.