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

CABLE: Cable retained an underlying buoyant feel through Tuesday, 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. Mentioned buoyancy was

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

German Constitutional Court's judgement on ECB's PSPP programme. 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 before it settled around Gbp0.8710. Cable trailed off to $1.2431

before it closed the day at $1.2434. Rate touched an early high in Asia of

$1.2450 but struggled to build, eventually trailed off before finding support at

$1.2425. UK Construction PMI at 0830GMT. 

- Cable support $1.2425/20 ahead of $1.2406-1.2389. Resistance $1.2450/55,

$1.2480/85, $1.2500.