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Sharp reversal lower in EUR/USD,......>

MNI (London)
EURO-STERLING: Sharp reversal lower in EUR/USD, which countered the initial ECB
Draghi react rally, shoved EUR/GBP back below its 10-dma(GBp0.8714) and on to an
extended low of Gbp0.8681 before cable's easing allowed the cross to edge back
to Gbp0.8708. Rate then settled back below Gbp0.8700 through the US afternoon
and into the close. Trade in Asia saw rate consolidate between Gbp0.8693-0.8701
before the EUR came under fresh downside pressure in early Europe. Cross has
eased to Gbp0.8686 but so far holds off a retest of Thursday's low. Support seen
into the Gbp0.8680 level, a break to expose Gbp0.8661(76.4% Gbp0.8620-0.8792).
Below here brings the 1.0% envelope base at Gbp0.8630 into play, with the recent
low of Gbp0.8620 close behind. Resistance GBp0.8710, 10-dma comes in today at
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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