An easing in the recent positive risk.........>

CABLE: An easing in the recent positive risk outlook managed to counter any

positive sterling react from what was seen as a 'hawkish' BOE, although lifting

QE by Gbp100bln. The downside move in cable was seen through the morning ahead

of the BOE announcements, with recovery efforts noticeably shallow. The initial

positive QE react was capped at $1.2549 before rate resumed its downward track,

breaking a rising support line at $1.2448(drawn from Mar20 low) before moving

through its 50-dma and 55-dma levels at $1.2427 and $1.2419 respectively before

finding a base at $1.2402. Recovery effort failed to move back above the broken

support line before it settled around $1.2420 into the close. Early Asia applied

fresh downside pressure, eased rate to $1.2405 before fresh demand emerged that

has lifted rate to $1.2450. Some resistance noted here, broken rising support

now at $1.2464. UK Retail Sales data at the top of the hour, ex-petrol forecast

at 4.1%mm, -14.9%yy; incl petrol 6.3%mm, -16.4%yy. UK Borrowing data   released

at same time. Risk remains the key driver for sterling. 

- Support $1.2427/22(50-dma/55-dma the latter key on a closing basis),

$1.2405/00, $1.2380, $1.2350. Resistance $1.2464, $1.2480, $1.2500, $1.2550.