Beautiful moat encloses a German city (3)
I believe the answer is:
ulm
'german city' is the definition.
(I've seen this before)
'beautiful moat encloses a' is the wordplay.
'ULM' is hidden within the letters.
However, I'm uncertain how this is indicated.
Can you help me to learn more?
(Other definitions for ulm that I've seen before include "German city on the Danube, home to Einstein and the world's tallest church steeple" , "German town" .)