Spiked to Gbp0.8848 in reaction to....>

EURO-STERLING: Spiked to Gbp0.8848 in reaction to the BOE cutting interest rates

by 50bp to 0.25%. The move seen dovetailing with today's 'corona'

Budget(1130GMT). However, BOE move was widely expected and rate quickly dropped

back to its pre announcement level of Gbp0.8785, currently around Gbp0.8793.

React move remained shy of the topside of the 2.0% 10-dma envelope (currently at

Gbp0.8857) though the corrective pullback held outside of the topside of the

1.0% envelope(currently Gbp0.8858) which will keep the recent underlying buoyant

tone in place. MNI Techs have commented that 'gains in early March resulted in

the break of Gbp0.8596, Jan 14 high, confirming an important swing in price that

also signals a potential M/T reversal. The cross last week held above this

breakout level, a positive development, and yesterday's gains confirm a

resumption of the current uptrend.  Gbp0.8621-0.8595 is key support. The 10-dma

currently comes through at Gbp0.8685.