Cable retained an underlying buoyant feel.....>

CABLE: Cable retained an underlying buoyant feel through the day, apart from one

hiccup caused by the reaction to the release of Svcs final PMI data, a poor

number though had improved from its flash forecast. The mentioned buoyancy was

provided by the general pressure on the EUR following market reaction to the

German Constitutional Court's judgement that the ECB's PSPP programme may not be

compatible with some EU Treaties. Cable, which had extended its recovery off

Monday's low of $1.2406, touched a high of $1.2484 ahead of data release, dipped

to $1.2421 before quickly attracting fresh demand that lifted it to $1.2481 in

NY. Meantime EUR/GBP had broken below its 10-dma and eased to a low of Gbp0.8690

which provided cable support. The cross nudged back to Gbp0.8730 but held below

its 10-dma(current Gbp0.8735) before settling around Gbp0.8710. Cable trailed

off to $1.2434(at writing) with the USD showing a firm tone into the US

afternoon.

- Cable support now seen into $1.2420 ahead of $1.2406-1.2389. Resistance

$1.2480/85, $1.2500.