Cable picked up recovery momentum through.....>

CABLE: Cable picked up recovery momentum through Christmas Day and into Boxing

Day, aided by Japanese demand for GBP vs JPY. Asian traders suggested that short

term traders may have been caught short by the move which added to the upside

push, alongside general mild USD selling. Cable edged to a recovery high of

$1.3016, off its Dec23 low of $1.2905, with rate retaining an underlying buoyant

tone into Europe. Early month-end models have suggested USD sales to be seen,

with some of this interest being covered ahead of year-end Tuesday. Sterling did

face some negative reaction to a press report suggesting Brussels will threaten

to block the City of London's access to European markets in an opening salvo of

post-Brexit trade talks in the new year(Times) but has managed to shrug this off

into Europe. 

- Support $1.2970/60, $1.2950, $1.2910/00. Resistance $1.3032, $1.3050,

$1.3075/80.