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Tuesday's recovery off Gbp0.8864......>

EURO-STERLING
MNI (London)
EURO-STERLING: Tuesday's recovery off Gbp0.8864 failed to push back above its
key technical 10-dma at Gbp0.8940 and retreated back to Gbp0.8900 into the
close. Early Asia took rate back to Gbp0.8920 before sterling picked up fresh
demand which allowed the cross to drop below Gbp0.8900 to Gbp0.8894. Whilst rate
remains below its 10-dma (by time now at Gbp0.8933) it keeps the underlying
sterling tone buoyant and keeps exposed the base of its 1.0% 10-dma envelope
which currently comes through at Gbp0.8843. A break and clear above the 10-dma
would negate the current outlook, a move above Gbp0.8940 to expose
Gbp0.8952(61.8% Gbp0.9007-0.8864) ahead of Gbp0.8973(76.4%) and recent highs at
Gbp0.9006/07. 
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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