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Sterling remains defensive through early...>

STERLING
STERLING: Sterling remains defensive through early Europe. GBPUSD continues to
be sold on rallies and holds towards the base of its $1.2661-82 range. Minor
support is reported on approach to $1.2650, ahead of the 61.8% retracement of
1.2559-1.2763 & pivotal support line off Mar highs at 1.2637/31. UK politics and
Brexit headlines again expected to drive ahead of the weekend.
- Sterling weakness allows the cross to consolidate above Gbp0.89. A weekly
close above puts the focus back on recent cycle highs at Gbp0.8933.
- GBPJPY dips back under Y137.00, returning the focus to Y136.50/70 which has
registered a series of previous lows through May/June.

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