TECHS: With UK retail sales out of the.....>

STERLING: TECHS: With UK retail sales out of the way a quick look at the FX

technical picture highlights the following:

- EURGBP has bounced however, the cross is trading within 0.8596 - 0.8452 range.

This week's trendline break remains the key technical development and provides a

bullish backdrop. Bulls need a move beyond 0.8596, Jan 14 high to trigger the

next leg higher. A clear short-term risk parameter has been defined at the Dec

31 low of 0.8452. A break of this support would be a concern for bulls.

- Cable is less clear cut. It is selling off this morning and benefitting too

from some selling pressure in EURUSD. Key supports lie at 1.2955 and 1.2905, Jan

14 and Dec 23 lows respectively. A break of the latter is required to expose

trendline support at 1.2856 drawn off the Sep 3 low. Initial resistance is at

today's 1.3118 intraday high.