Cable extended Tuesday's recovery to..........>

CABLE: Cable extended Tuesday's recovery to $1.3194 in NY before it settled

around $1.3180 into the close. Sterling strength was general, allowed EUR/GBP to

press down to Gbp0.8921 as this rate extended its pullback from its recent rally

high of Gbp0.8997, as well as away from the top of its 10-dma 1.0% envelope.

Trade in Asia consolidated between $1.3171-86 before early Europe pressed rate

down to $1.3163. Rate currently trades around $1.3178. Traders continue to

mention last Saturday's auction win by Comcast to buy Sky in a deal worth

Gbp30.9bn/$39bn, suggest that sterling picks up demand into dips and expected to

do so through to the end of the week. Attention turns to this evening's FOMC

rate announcement, most expecting a hike of 25bps with more attention on the

accompanying comments for rate path outlook. UK Finance New Home loan approvals

for August due at 0830GMT ahead of CBI Distributive Trades at 1000GMT provides

domestic interest. Cable support $1.3145/40 ahead of $1.3100. Resistance now

seen at $1.3186/94 ahead of stronger interest seen around $1.3200.