Sterling continues to hold most of....>

EURO-STERLING: Sterling continues to hold most of its recent gains, the cross

Tuesday able to extend recent losses to Gbp0.8626, as wellas closing outside of

the base of its 2.0% 10-dma envelope. Moves driven by Brexit deal enthusiasm but

some suggesting cracks beginning to appear on the UK side, don't forget PM May

had an agreement but failed to get it passed. Sterling has thus pared back some

of its recent gains, the cross edging back inside its 2.0% envelope (base

currently at Gbp0.8655) as it trades up to Gbp0.8678. However, some of this

correction was seen on the back of general EUR demand as market reacted to

headlines concerning Germany's CDU stance on stimulus. Underlying optimism, for

a Brexit agreement, remains though market seen wary. 

- Support Gbp0.8655 ahead of Gbp0.8627/26. Resistance Gbp0.8695-0.8700. Base of

the 1.0% envelope currently comes through at Gbp0.8744.