Cable extended its recent recovery through....>

CABLE: Cable extended its recent recovery through Tuesday trade, rate picking up

momentum as London returned from their long weekend. A mix of general risk

appetite, US equities boosted by global easing of COVID-19 restrictions, which

in turn weighed on the USD, a market positioned short (many reports of late,

fundamental and technical, advising sterling's imminent move lower based on BOE

comments on negative interest rates, Brexit negotiation concerns and current

pressure on PM Johnson over his chief adviser) as well as month-end approaching

at the end of the week, early predictions suggest USD sales to be seen, with

stops from those squeezed positions fuelling the move. Rate cleared above $1.23

ahead of the NY open, with pullbacks into the returning US market holding above

the figure before fresh demand emerged to push rate up to challenge the $1.2360

level (50% $1.2643-1.2076 - Apr30-May18) touching a high of $1.2363 before

momentum faded. Rate has since drifted off to the $1.2330 area into the Europe

close. Risk outlook and month-end activity to remain key drivers. 

- Support $1.2329, $1.2300, $1.2280. Resistance $1.2360/63, $1.2377, $1.2400.