Sterling continued to recover through.........>

CABLE: Sterling continued to recover through Wednesday trade, overcoming set

backs during the European morning, with the entry of the US providing a decent

boost via risk/equities. Cable, which had begun its recovery through Tuesday's

month-end fix, pushed up to $1.2402 into the close, eased to $1.2360 ahead of

today's European open, recovered to $1.2421 before NY powered it on to $1.2490.

Release of strong ISM data along with positive COVID vaccine news boosted

equities, which in turn lifted risk which weighed back on the USD. Cable was

holding most of its gains into the NY afternoon. Sterling strength was also seen

in EUR/GBP as the cross broke back under its 10-dma, having been rejected

Tuesday away from the top of its 1.0% 10-dma envelope. Support now seen at

$1.2420 ahead of $1.2370/60, $1.2343(61.8% $1.2252-1.2490), $1.2408(76.4%).

Resistance $1.2490/1.2500, $1.2520/25, $1.2550. 

- A light UK calendar Thursday, main attention on US NFP(Thursday release due to

Friday holiday). 

- Equities to continue providing main directional barometer for risk.