Another early dip in sterling Tuesday.........>

CABLE: Another early dip in sterling Tuesday before the pound resumed its

recovery (as per Monday), cable touched a low of $1.2895 before it edged on to

$1.2968 in early NY. Rate eased to $1.2935 into the 1600GMT fix, extended to

$1.2933 before it recovered to $1.2967, closing the day around $1.2953. Rate

touched $1.2950 in early Asia edged to $1.2969 before it settled around $1.2960.

Rate was trading around its NY close into Europe. EUR/GBP held below its 10-dma

(Gbp0.8459) Tuesday before it retreated to Gbp0.8420, the move seen aiding

general sterling buoyancy. Cross has extended this move to Gbp0.8416 in Asia, a

break of Gbp0.8412(rising support Dec13) to add further sterling strength. Early

pressure seen on cable, though not as heavy as the previous early action seen

Monday/Tuesday.

- A light data calendar in the UK. Focus on PM Questions at 1200GMT. 

- Cable support $1.2950, $1.2933, $1.2915, $1.2895. Resistance $1.2970,

$1.3000/05.