Sterling holds firm into Europe, extending....>

CABLE: Sterling holds firm into Europe, extending the recovery off last

Thursday's multi-month lows of $1.2606. GBPUSD rallied to $1.2753 in early Asia,

before light profit take sales eased to consolidate in narrow range trade. 

- The Brexit party claimed a big victory in the European elections, there were

also decent gains seen for Lib Dems. Labour and the Conservative Party were the

biggest losers on the night.

- With both the UK & US out today volumes are expected to remain extremely

light. Hourly res May 23 provides the first layer of resistance at $1.2793,

stronger placed behind on approach to $1.2800.

- EURGBP topped out at Gbp0.8850 Friday, before fading. The cross failed to

extend its recent run into a 15th day, with the subsequent retracement extending

to Gbp0.8802 at the close. Rate has since dipped back under Gbp0.8800 with next

support seen at Gbp.0.8774/72 from the 200-hma & May 22 low.

- GBPJPY based ahead of Y139.00 with the uptrend extending through Y139.60.

Near-term resistance seen at Y140.12 which represents the 50% retracement of

Y141.73-138.51.