Cable further extended its recovery...........>

CABLE: Cable further extended its recovery Wednesday, off Monday's low of

$1.2872(YTD low), to a high of $1.2991 in early early NY before momentum faded

and rate reacted to the continued pressure on EUR/USD. Cable eased to $1.2954,

recovered to $1.2980 through the 1600GMT before it closed around $1.2960. Sharp

rise in reported COVID-19 cases in Hubei province prompted a drop in USD/JPY,

though this risk off move only edged cable to $1.2965 before rate continued its

corrective pullback, touching a low of $1.2944 ahead of the European open. Rate

has since edged to $1.2956. Though cable is trading softer sterling overall is

performing well. EUR/GBP was pressed back below Gbp0.8400 Wednesday, extended it

corrective pullback to an extended YTD low of Gbp0.8381(Gbp0.8387 Jan31). The

cross is off its low, but remains below Gbp0.8400.

- A light data calendar in the UK Thursday. Attention on US CPI and Weekly

Jobless Claims at 1330GMT. 

- COVID-19 developments to be watched for the effects on general risk. 

- Cable support $1.2945, $1.2935/30, $1.2917, $1.2900. Resistance $1.2965,

$1.2980, $1.2991/1.3000.