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Sterling strength allows the cross....>

EURO-STERLING
MNI (London)
EURO-STERLING: Sterling strength allows the cross to extend its easing, making a
show below the base of its 1.0% 10-dma envelope, which currently comes in at
Gbp0.8437, currently trading around Gbp0.8436 after touching a low of Gbp0.8433.
Cross tends not to like being outside of its 1.0% envelope for too long, though
the base will move lower with time. Expect some support into Gbp0.8425/20 ahead
of Gbp0.8400 and the May10 2017 low of Gbp0.8384. Resistance now seen at
Gbp0.8450. Polls continue to show a lead for the Conservatives in the upcoming
Dec12 election, which if proves correct should produce a working majority. This
outlook is squeezing out sterling longs. 
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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