BOE Broadbent Tuesday declined to rule out....>

CABLE: BOE Broadbent Tuesday declined to rule out negative rates in the UK,

despite the policy rate already sitting at the effective lower bound, which

placed sterling under general pressure. Sales took the rate to an eventual low

of $1.2256 into the NY close with early Asia pressing it on to $1.2251 before

meeting decent support into $1.2250 ($1.2248 Apr21 low). Rate recovered to

$1.2278, dipped to $1.2257 before stronger demand emerged ahead of Europe which

lifted it on to $1.2285. Position adjustments seen driving the rate ahead of

this morning's release of UK prelim Q1 GDP, IP/Mfg and Trade data at 0700BST.

Market median for focal GDP -2.6%qq, -2.2%yy. Median for IP/Mfg -5.6%mm,

-9.1%yy/-6.0%mm, -10.5%yy. 

- Support remains into the $1.2250 area, a break and clear to open a deeper move

toward $1.2220 ahead of $1.2200 and the Apr07 low of $1.2166. Resistance

$1.2285, $1.2300, $1.2330/35.

- MNI TECHS: Price action since mid April has defined two key directional

triggers, resistance at $1.2648(Apr14 high) and key support at $1.2248(May7

low). Below $1.2248 exposes $1.2166 and below.