Sterling struggled to hold recovery gains.....>

CABLE: Sterling struggled to hold recovery gains Wednesday, cable having spiked

up to $1.2291 on comments from the Irish FinMin that UK and Irish PM offices

were engaging in Brexit talks, before it sank back to $1.2198 in NY with

recovery efforts fairly muted. Talks between the Ireland's Vradkar and PM

Johnson today though market seen needing definite progress to attract buyers

back into sterling. Brexit Sec Barclay is also due to meet EU Barnier. UK GDP

and IP due for release at 0830GMT. UK growth expected to flatline due to Brexit,

though any deeper dip will concern on recession outlook. Cable managed to edge

to $1.2231 in Asia on the back of risk driven trade (linked to headlines

concerning the upcoming US-China trade talks) but had quickly faded those gains

into early Europe, trading back around $1.2220 at writing. 

- Support remains between $1.2205/1.2195, a break of $1.2190 likely to prompt

heavier sales, which may come hand in hand with a break of Gbp0.9000 (top of the

1.0% 10-dma envelope has moved up to Gbp0.9013 by time). Next support seen at

$1.2175 ahead of $1.2160/50. Resistance $1.2290/1.2305.