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Sterling Knocked Back Through the Fix

CABLE
MNI (London)

Sterling seemed to take a knock through the 1600BST fix. Cable had extended its recovery to $1.2903 on the back of BOE Bailey comments and positive Brexit headlines but again met headwinds as it moved above $1.29 before it fell back to $1.2833 through the fix. EUR/GBP, which had earlier traded off to Gbp0.9062(just shy of it 1.0% 10-dma envelope base of Gbp0.9050) , saw a strong rebound to Gbp0.9146. However, tentative sterling buyers are beginning to emerge again which allow cable to edge back to $1.2860, whilst EUR/GBP eases back below its key 10-dma, currently coming through at Gbp0.9141, to Gbp0.9130. Month-end flows currently seen providing a counter to any reaction to positive Brexit headlines. Support remains around $1.2830($1.2829 Monday's pullback low off $1.2907), a break to expose $1.2800. Resistance remains at and above $1.2900. Whilst EUR/GBP holds below its 10-dma seen keeping sterling outlook buoyant.

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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