Recovery off Tuesday's low of $1.2955(YTD.....>

CABLE: Recovery off Tuesday's low of $1.2955(YTD low) touched a an opening

Europe high of $1.3043 Wednesday only to get shoved lower on pre UK CPI

positioning. A softer CPI release than had been forecast added the weight to

take the reactive sell off to $1.2986, some suggested that this release added

fuel to thoughts of a rate cut at January's MPC meeting. However, the dip

attracted buyers which allowed rate to recover to $1.3039 in post fix trade,

holding these recovery gains into the close. Bank reports continue to suggest

that pricing in a cut at the Jan meeting could be premature, suggesting a

clearer picture to be seen on release of PMI's(flash PMI's Jan24, BOE MPC and

Inflation Report Jan30). Cable posted an opening high of $1.3058 in Asia then

settled between $1.3038-53 through the balance of the session. Early Europe

pressed rate to an extended intraday low of $1.3034, currently trading around

$1.3045 at writing.

- Support $1.3020, $1.3000, $1.2985. Resistance $1.3058, $1.3080,

$1.3088(falling trend rsst Dec13)

- A data light calendar for the UK Thursday. US data in focus.