Tuesday's break back above the........>

EURO-STERLING: Tuesday's break back above the 10-dma allowed the cross to extend

its recovery away from its election low of Gbp0.8276 to challenge the top side

of its 1.0% 10-dma envelope at Gbp0.8510. Pressure remained on sterling in Asia,

the envelope top by time had moved up to Gbp0.8517 and was again tested. Rate

held and has since eased back to Gbp0.8484. While rate can hold below the

envelope top it can allow for a move back toward the 10-dma, currently coming

through at Gbp0.8430. With a hard Brexit supposedly back on the negotiating

table and has prompted a further squeezing out of sterling longs though the

pound expected to find willing buyers into dips. UK CPI to be released at

0930GMT, headline expected to ease to 1.4% from 1.5% last.