Sterling outperformed yesterday............>

STERLING: Sterling outperformed yesterday underpinned by positive Brexit

headlines and month-end dollar sales. GBPUSD rallied through its 100 & 200-dma's

to comfortably close above the $1.30 level. Rate currently challenges the

$1.3045/50 area, which has so far proved hard to overcome.

- Next resistance is seen at $1.3067/92 which represents the Apr 17 high &

55-dma.

- EURGBP's 55-dma finally gave way on a closing basis yesterday, touching

pullback lows of Gbp0.8590. The Apr 5 low & 61.8% retracement level provide the

next area of support at Gbp0.8557/54.

- GBPJPY cleared its 200-dma with the rally squeezing through Y145.00. Rate

extends to Y145.51 with next resistance from the Apr 23 high at Y145.63, ahead

of the 61.8% fibo of Y147.01-143.78 at Y145.78.

- UK PMI mfg the main highlight today at 0830GMT. Analysts are expecting a weak

reading with Brexit stock-piling said to be put on hold and weigh on production

levels.