Cable extended its recovery off its Apr07.....>

CABLE: Cable extended its recovery off its Apr07 low of $1.2166 (as well as off

its Mar20 YTD low of $1.1412) Tuesday, the rate pushing to $1.2648 during the NY

afternoon before it settled around $1.2630 through to the close. Early

consolidation in Asia before rate began to drift lower, Asian traders noting

some risk aversion creeping back in ahead of today's US earnings reports, which

were seen placing pressure on equity markets. Cable met support ahead of $1.2600

which kept it buoyed for a while before early Europe added their weight to take

it down to $1.2585. Despite this pullback sterling continues to enjoy some

underlying buoyancy. Support now seen at $1.2585 ahead of $1.2570. Expect some

support at $1.2550 ahead of $1.2525/15, covering an hourly low Apr14 as well as

the broken 61.8% retrace level at $1.2517). Resistance remains into $1.2650.

- A light UK data calendar for Wednesday. 

- MNI TECHS: Cable has also traded through the 50-day EMA which further

reinforces a positive price structure. Focus is on gains above $1.2700 next with

attention on $1.2778(76.4% Mar9-20 sell-off). Key support defined at

$1.2166(Apr07 low). Initial support $1.2442.