Cable managed to extend recovery off..........>

CABLE: Cable managed to extend recovery off Friday's NY low of $1.2315 through

Asia and into early Europe Monday as early risk aversion faded and turned mildly

positive. Cable edged to $1.2390 before sterling began to falter, possibly

linked to month-end EUR/GBP buy interest, cross moving outside the top end of

its 1.0% 10-dma envelope (current Gbp0.9127) to a high of Gbp0.9176, which saw

cable drop through $1.2300, finding support ahead of $1.2250(76.4%

1.2076-1.2813, touched $1.2352) into the 1600BST fix. Friday's pullback in the

Dow seems to have flipped the month-end outlook from earlier prelim model calls

for USD sales to USD buys. Cable managed to reclaim some lost ground to $1.2293,

dipping back to $1.2275 (possibly 1800BST fix related), currently around

$1.2285.

- Support remains into $1.2250, break to expose $1.2234, $1.2206. Resistance

$1.2293-1.2300, $1.2330-35.

- Tuesday month-end with possible cable sell pressure. Final Q1 GDP at 0700BST,

no change from -2.0% widely expected.

- BOE Cunliffe due to speak.