Month-end flow Thursday provided GBP/USD......>

CABLE: Month-end flow Thursday provided GBP/USD the drive to take rate to an

extended high of $1.2643 but without this demand the pound found it difficult to

hold gains, the rate drifting lower through the day to current level around

$1.2495. EUR/USD however retained a buoyant feel, and with overhang month-end

demand was able to extend its Thursday rally, in turn allowing EUR/GBP to push

above its key technical 10-dma (current Gbp0.8745) to a high of Gbp0.8796, with

the move exposing the topside of its 1.0% 10-dma envelope, currently coming

through at Gbp0.8833(though this will likely edge higher the close rate gets to

it). Attention next week on the BOE MPC monpol announcement Thursday (no change

expected, more interest in the June meeting and possible expansion of QE) ahead

of Friday's US Employment Release. 

- Cable support $1.2476, stronger into $1.2440/30 ahead of $1.2400-1.2390.

Resistance $1.2564, $1.2575/80 ahead of $1.2600/05.