Sharp Retracement Signals A.....>

EURO-STERLING TECHS: Sharp Retracement Signals A Base

*RES 4: 0.8597 2.0% Upper 10-dma envelope

*RES 3: 0.8575 High Dec 2

*RES 2: 0.8531 High Dec 4

*RES 1: 0.8518 High Dec 18

*PRICE: 0.8505 @ 05:45 GMT Dec 19

*SUP 1: 0.8484 Low Dec 18

*SUP 2: 0.8356 Low Dec 17

*SUP 3: 0.8277 Low Dec 13 and key support

*SUP 4: 0.8213 1.500 projection of Aug 12 - Sep 20 sell-off from Oct 10 high

EURGBP rallied sharply has retraced all of the post election sell-off that

resulted in a low of 0.8277 on Dec 13. Price yesterday probed resistance at

0.8509, Dec 12 high. A clear break of this level would most likely signal the

confirmation of a short-term base and open 0.8575, Dec 2 high and potentially

above. On the downside, support lies at Tuesday's 0.8356 low where a break is

required to reinstate a near-term bearish focus.