Sterling outpaces creaking euro, lags firm dollar

By Neal Armstrong LONDON, Nov 9 (Reuters) - Sterling rallied to its highest in nearly six weeks versus a struggling euro on Tuesday as peripheral debt concerns in the euro zone dogged the single currency, pushing the pair towards key technical support. The euro's losses deepened as worries about a political impasse in Dublin ahead of a key budget vote saw 10-year Irish bond yields IE10YT=TWEB shoot above 8 percent on Monday -- much higher than the cost of borrowing from the European Union's emergency fund. Euro/sterling EURGBP=D4 dropped below 86 pence on Tuesday, slipping to a near six-week low of 85.90. Technical analysts said the close below the 38.2 percent retracement of the August to October rally at 86.36 pence on Monday was a bearish sign, with the 200-day moving average AT 85.72 seen as support. "The euro is under pressure on peripheral debt concerns but I think it will be difficult to break 85.50," said Jeremy Stretch, head of currency strategy at CIBC. "Better...