Reported support between $1.2186/84 (50%......>

CABLE: Reported support between $1.2186/84 (50% $1.2076-1.2296/May19 low)

contained the base at $1.2185 in early European trade before rate settled around

$1.2200 into release of UK flash PMI data. A much stronger than forecast PMI set

lifted sterling, took cable up to $1.2246 during the European morning, whilst

pressing EUR/GBP away from highs of Gbp0.9000 back to Gbp0.8958. However, EUR

demand into early NY trade overtook cable, took the cross back to retest the

Gbp0.9000 level as EUR/USD made an appearance back above $1.1000. Move saw cable

back off to $1.2206 but the corrective pullback in the EUR eased the upside

pressure on the cross which allowed cable to settle between $1.2220/40, after

touching $1.2250, through to the European close. Sterling elevation continues to

'surprise', many reports outlining reasons why the pound should turn lower,

Brexit negotiations, continued talk of using negative rates by BOE officials

and/or expansion of QE. EUR/GBP could drive this outlook with the EUR able to

drift higher as downside pressure on EUR/CHF rescinds.

- Cable support $1.2185/84, $1.2160/50. Resistance $1.2250, $1.2275, $1.2288,

$1.2296/1.2300.