Still Bearish Below 0.8688......>

EURO-STERLING TECHS: Still Bearish Below 0.8688

*RES 4: 0.8605 High Nov 22

*RES 3: 0.8596 High Jan 14 and bull trigger

*RES 2: 0.8554 High Jan 20

*RES 1: 0.8505 High Feb 3

*PRICE: 0.8504 @ 16:33 GMT Feb 3

*SUP 1: 0.8387 Low Jan 31

*SUP 2: 0.8356 Low Dec 17

*SUP 3: 0.8352 76.4% retracement of the Dec 13 - Jan 14 rally

*SUP 4: 0.8277 Low Dec 13 and key support

EURGBP traded decently firmer Monday with Sterling under pressure. Markets made

light work of near-term resistance at 0.8488, Jan 30 high, which opened a strong

intraday bounce. This opens 0.8553, the Jan 20 high. Our focus has been on the

potential for weakness following the recent sell-off between Jan 14 and Jan 31.

A break of Friday's 0.8387 is needed to reinstate this outlook and open 0.8356,

Dec 17 low and 0.8277, Dec 13 low.