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Tuesday's break below trendline.......>

EURO-STERLING
MNI (London)
EURO-STERLING: Tuesday's break below trendline support at Gbp0.9050 (drawn off
the May06 low) saw rate drop to an initial low of Gbp0.9017, recovered to
Gbp0.9058 before it sank back to Gbp0.9016. Cross slowly recovered to close the
day around Gbp0.9025 (as well as back within its 1.0% 10-dma envelope-base Aug27
Gbp0.9027). Sterling was given a general boost Tuesday as markets reacted to
raised hopes for a Brexit deal, following reported comments at G7, and moves by
mainly opposition MP's to stop a no-deal Brexit. With no fresh news sterling has
slowly pared back gains with EUR/GBP nudging up to Gbp0.9039 in early Europe.
The base of the 1.0% envelope has by time eased to Gbp0.9007, the 10-dma to
Gbp0.9098. While rate holds below this latter level seen keeping hopes alive for
a deeper correction. Initial resistance seen at Gb0.9058, recovery high Tuesday
off Gbp0.9016 and broken trend support line.   
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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