Recovery off Friday's post low of $1.2292.....>

CABLE: Recovery off Friday's post low of $1.2292 extended in early Europe Monday

to challenge the $1.2426 level (61.8% $1.2643-1.2076) where it met decent

resistance on first test. Rate eased to $1.2375 into NY where it met fresh

demand that spiked it through the May8 high of $1.2467 and on to $1.2488 around

today's 1600BST fix. Post fix rate eased off, finding support around $1.2456,

trading around $1.2470 into the European close. Equity markets continued to push

higher, the outlook for risk continuing to improve with the USD taking the full

impact as it lost ground across the board. The move through $1.2426 and $1.2467

would have seen further long term short positions capitulate with the $1.2500

level looming. Resistance now seen at $1.2488 ahead of $1.2500, with $1.2509/16

(76.4% $1.2643-1.2076/May5 high) area providing technical interest. 

Support $1.2456, $1.2426, $1.2375.

- This recent upside correction in sterling seen counter to fundamental

expectations with this week's Brexit negotiations and BOE leaving the door open

for negative interest rates so far not able to fully counter current risk driven

drive.