Cable managed to extend its corrective........>

CABLE: Cable managed to extend its corrective bounce away from early Asia lows

of $1.2251 to $1.2340 into early NY, the pound paring some of Tuesday's losses

as market reacted positively to the release of better than forecast UK Q1 GDP

data, albeit weak. However, this enthusiasm for the pound quickly faded as Fed

Powell added his voice to recent Fed officials' negative rate aversion,

following on from BOE Broadbent comments Tuesday when he declined to rule out

the use of negative rates in the UK. This added weight to a retreating pound and

pressed cable through key support at $1.2248 to a late Europe low of $1.2210.

Some late buoyancy was provided as EUR/GBP eased away from its highs of

Gbp0.8877, squeezing itself back within its 1.0% 10-dma envelope (topside

currently coming through at Gbp0.8854), with cable edging back toward $1.2230.

Support now seen into $1.2210/00, a break to expose the Apr7 low of $1.2166,

with a 1.618% swing target close behind at $1.2142, based on the recent recovery

from $1.2266 to $1.2467. Resistance now seen at the broken support of

$1.2248/51, a break to open a move toward $1.2280/85 ahead of $1.2300.

- Thursday calendar sees BOE Bailey speaking at 1030GMT.