Early demand in Europe Tuesday provided the...>

CABLE: Early demand in Europe Tuesday provided the momentum to take rate through

Monday's high of $1.2949, with the move through $1.2950-55 adding to the upside

pressure that managed to take rate through $1.3000 and onto $1.3010 in early NY.

Drop to $1.2976 met further bid interest which lifted rate through the fix to an

eventual intraday high of $1.3011. Rate eased off to $1.2989 before closing the

day at $1.2995. Cable met resistance at $1.3000 in early Asia but managed to

make a show to $1.3003 before backing off to $1.2989 where it again met support,

but pressure has enabled it to ease on to $1.2983 at writing. Market remains

sterling positive for the Dec12 election, PM Johnson still favoured to win with

a working majority and prompting demand into dips, though as the election gets

closer market to watch if Labour can close the gap. Final Services PMI data

released at 0930GMT, flash 48.6.

- Support $1.2980/75, $1.2950, $1.2935/30. Resistance $1.3011/13, $1.3150,

$1.3180/85.