Steady after closing up 0.4% on Friday, supported by wider yield spreads

10yr gilt +1bp to 4.325% and 10yr Treasury yields -5bp to 3.969%

BOEWATCH prices a 25pt Aug 3 hike to 5.25% at 73.3% and 50pts at 26.7%

Yield expectations in the next 6 months provide underlying sterling support

Charts, daily momentum studies slip, 21-day Bollinger bands contract

5, 10 & 21-day moving averages coil, signals show no significant bias

Friday's 1.2766 low in Asia and 1.2726, 50% May/July rise initial support

1.2885/86 10 & 21-day moving averages then NY 1.2888 high are first supports

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