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Reversal from Monday's high of........>

EURO-STERLING
MNI (London)
EURO-STERLING: Reversal from Monday's high of Gbp0.8574 caught market wrong
footed, the break higher saw technical traders prompted to go long. Sterling
demand into dips remains relevant, as market still favours a PM Johnson election
win with a working majority, which helped EUR/GBP to drop back below its key
10-dma (currently coming through at Gbp0.8543) to a low of Gbp0.8513. Rate
recovered to Gbp0.8537 before closing the day at Gbp0.8527. Through Asia and
into Europe rate has been held within a tight range of Gbp0.8520/30. Focus on
EZ, then UK Services PMI releases. 
- Support remains at Gbp0.8515/00, Gbp0.8490/84. Base iof 1.0% 10-dma envelope
currently at Gbp0.8457. 
- Resistance Gbp0.8530/37, Gbp0.8565/75.  
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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