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Extended its recent recovery Tuesday,.........>

MNI (London)
CABLE: Extended its recent recovery Tuesday, having met decent support ahead of
$1.2400. Rate rallied in tandem with EUR/USD to a high of $1.2518 into NY before
general pressure on the USD subsided and it drifted back to $1.2421 into the
close. Risk on into Asia which led to another round of pressure on the USD and
allowed cable to recover to $1.2486 into Europe. Rate was holding most gains in
early Europe but support looks weak. Month end approaching Thursday with models
suggesting USD sales to be seen into the fixes which could provide some
buoyancy. EUR/GBP remains below its technically key 10-dma(current Gbp0.8733)
and also seen providing buoyancy for the pound. A move back above the 10-dma
could dent this view. US GDP and FOMC in focus today ahead of Thursday's ECB and
- Cable support $1.2425, $1.2405/00, $1.2360. Resistance $1.2486, $1.2495,
- MNI TECHS: GBPUSD maintains near-term bid tone as it holds onto recent
recovery off $1.2248(Apr21 low). Current gains likely a correction as long as
resistance at $1.2529(Apr16 high) remains intact. 
MNI London Bureau | +44 203-586-2231 |
MNI London Bureau | +44 203-586-2231 |

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