Reports in the UK press of positive...........>

CABLE: Reports in the UK press of positive progress in the UK/EU negotiations

provide sterling with an added lift through Asia, taking cable on to $1.2525

before Europe advanced move on to challenge the topside of its 2.0% 10-dma

envelope at $1.2555. A brief pullback to $1.2510 before rate rallied back,

pushing on to the technical 100-dma target at $1.2574, touching $1.2576 then

dropped back to $1.2527 in early NY. Recovery efforts were capped at $1.2570

before it settled around $1.2530 through the European close and into the NY

afternoon. Sterling recovery has benefited from the general risk appetite move,

initially driven by the pressure on the USD, with JPY eventually breaking lower

which allowed GBP/JPY to push above Y135.50 and on to Y136.50. EUR/GBP also

reflected sterling strength as rate eased toward the base of its 1.0% 10-dma

envelope, Gbp0.8862, touching Gbp0.8865 before slowly edging back around

Gbp0.8920 (remaining below its key 10-dma, currently at Gbp0.8951). 

- Cable support $1.2530, $1.2510/00, $1.2480. Resistance $1.2574/76 ahead of

$1.2601(May1 high), $1.2633 falling resistance off Apr14 high, $1.2643/48(Apr30

high/Apr14 high). UK Svcs PMI Wednesday 0930BST, flash 28.0.