Wednesday's sterling recovery proved to be....>

CABLE: Wednesday's sterling recovery proved to be short lived as Fed Powell

knocked risk outlook, along with adding his voice to negative rate aversion.

Cable had managed to edge to $1.2340, helped in part as market reacted to the

release of better than forecast UK Q1 GDP data, albeit weak, but warnings on

growth for Q2 provided the initial counter, as rate was pressed to a low of

$1.2210, closing the day around $1.2235. Rate managed to edge on to $1.2239 in

early Europe only to turn lower, eventually breaking below $1.2200 to $1.2187

into Europe. This move below $1.2200 seen exposing Apr7 low of $1.2166 ($1.2176

38.2% $1.1412-1.2648). Expect further support to emerge into $1.2150, a break

here to open a move toward the Mar27 low of $1.2132. Initial resistance now seen

into $1.2200, a break to open a move toward $1.2240/50. 

- A light data calendar in the UK Thursday. Domestic focus on BOE Bailey at

1030GMT. Bailey was interviewed by ITV Robert Preston Wednesday and was seen

signalling the Bank likely to increase purchases of government debt, though no

amount mentioned.