Managed to extend its recovery off Tuesday....>

CABLE: Managed to extend its recovery off Tuesday lows of $1.2725 to $1.2806 in

European morning trade before gains were pared back to $1.2743 in early NY

through to post London fix. However, rate snapped higher as market reacted to

perceived dovish comments from Fed Powell which took rate up to $1.2847 before

momentum stalled. Rate drifted back to $1.2822 ahead of the close. Early Asia

squeezed corrective pullback to $1.2819 before fresh USD sales emerged, reacting

to USD/JPY squeezing lower in reaction to a fading in the early equity rally.

Cable tracked EUR/USD's rally, edged to a fresh recovery high of $1.2850 before

momentum again faded. Rate eased to $1.2828 into early Europe. Brexit continues

as the main driver of sterling direction, though market generally seen reactive

to Fedspeak. BOE Carney produced Brexit scenarios Wednesday, warning about the

potential dire effects a no-deal Brexit would have on the UK economy. Comments

came as no real surprise and had little effect on sterling. BOE Carney is due to

be heard on BBC R4 at 0810GMT(recorded interview with most of the detail

reported). UK Consumer Credit due at 0930GMT. Cable resistance $1.2850, $1.2864

and from above $1.2880 through to $1.2900. Support $1.2820/19, $1.2800.