Cable extended its recent recovery through....>

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

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

appetite, a market positioned short (many reports of late, fundamental and

technical, suggested 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, 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, then

edged on to challenge the $1.2360 level (50% $1.2643-1.2076 - Apr30-May18)

touching $1.2363 before momentum faded. Rate eased to $1.2322, closing the day

at $1.2335. Late US-China headlines soured recent positive risk outlook and

acted to press cable back to $1.2310. Main focus on Sino-US relations, as

protests begin in HK, to determine risk outlook. Month-end approaching, market

will watch for any demand emerging in EUR/GBP.

- Support $1.2310/00, $1.2280, $1.2255/50. Resistance $1.2360/63, $1.2377,

$1.2400.