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

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

month-end.

- Cable support $1.2425, $1.2405/00, $1.2360. Resistance $1.2486, $1.2495,

$1.2518.

- 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.