Recovery Extends in Asia but Market Remains Way of Brexit Headlines.

Cable marked an extended low in early NY Wednesday of $1.2846, off Tuesday's rejection from $1.3007, as sterling continued to react to Brexit noise. However, the pound recovered into Wednesday's 1600BST fix to $1.2928 before closing the day at $1.2920. Asia took over the recovery baton and edged rate on to a high of $1.2944($1.2945 61.8% of fall from $1.3007 to $1.2846) into Europe. Expect resistance into $1.2950, a break to expose $1.2969(76.4%) ahead of stronger resistance seen at $1.3000/10($1.3007 Sep16-Oct6 high) with the 55-dma coming in slightly above at $1.3022. Support seen into $1.2900, $1.2880, $1.2850/40. BOE Bailey(dove) speaks at a panel discussion 0825BST. Light domestic data calendar. Focus on US Weekly Jobless Claims. Brexit headlines remain a key driver. PM Johnson's Oct15 deadline approaching though most suggest negotiations to continue with hopes of an agreement by the end of Oct.

MNI Techs: The GBPUSD outlook remains bearish and recent gains continue to be viewed as a correction. Tuesday's price action reinforced this with Cable selling off on the day. In Japanese candle terms, Tuesday's price action is an engulfing reversal pattern and signals the end of the recent corrective bounce. Further weakness would open 1.2806, Sep 30 low and if this level is cleared, 1.2676, Sep 23 low. Resistance is at 1.3007, Sep 16 and Oct 6 high.