Sterling traded on the backfoot Monday,.......>

CABLE: Sterling traded on the backfoot Monday, though no news was apparent for

the move. Suggestions that position adjustments ahead of today's UK Employment

data, as well as Inflation data Wednesday and Retail Sales Thursday, provided

the drive as cable eased from an early Asian high of $1.2582 to an eventual low

of $1.2511, with recovery efforts capped around $1.2520. Asia continued to meet

resistance above $1.2520, extended the pullback low to $1.2507 before it settled

between $1.2510-15. 

- Traders expect a solid UK Jobs report but any weakness in the three upcoming

data releases this week could exert further pressure on the pound as it would be

seen fuelling recent BOE dovish comments.

- Support remains into $1.2500, a break to expose the 61.8% retrace of the

recent recovery from $1.2440 to $1.2582 at $1.2494. 76.4% comes in behind at

$1.2474. Below here and the recent low of $1.2440 moves back into view, with

tech support noted just behind at $1.2439(76.4% 1.1841-1.4377). Break lower

turns focus on $1.2400 with recent suggestions that this level could draw option

linked protection ahead. Resistance remains in place at $1.2582.