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Consolidation remains in play, after..........>

CABLE
MNI (London)
CABLE: Consolidation remains in play, after sterling gained a boost Wednesday on
the back of EU Brexit negotiator Barnier comments which seemed to soften their
stance. Cable did see highs early Thursday of $1.3043(meeting resistance around
the 50-dma, today lower at $1.3037) before it was pulled down to $1.2985 in
early NY as rate trailed EUR/USD's stronger corrective pullback. This in turn
allowed EUR/GBP to extend its recent pullback, from Wednesday high of Gbp0.9099
to Gbp0.8954. Cable recovered back above $1.3000 ahead of the Thursday close,
Asia confining trade to $1.3004/25 with early Europe so far respecting that
high. Month-end and bank models said to show strong USD sell signals, which
could counter any month-end EUR/GBP demand. Cable has a decent sized option
expiry at $1.3000 for today's NY cut for Gbp969mn which may act to keep the rate
anchored close by. Cable resistance now seen at $1.3037/43, support into $1.3000
ahead of $1.2985. 
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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