Updating time : 22/11/2007 00:18 GMT

GBP/USD - 2.0633 ...The British pound extended marginally higher to 2.0699 once European markets opened n then fell sharply to 2.0527 on active cross selling in sterling especially versus the euro and the Japanese yen after the release of dovish BOE minutes that added speculation of a cut in rates. However, renewed buying interest emerged there n price rebounded to 2.0675 in late New York due to dlr's broad-based weakness on falling in U.S. stocks.

Despite cable's o/n brief but strg rebound, current price action suggests as long as 2.0699 res holds, further choppy consolidation is in store n below 2.0584 (61.8% r of 2.0527-2.0675) may bring another fall twd 2.0548 (N.Y. sup) n then re-test of 2.0527, however, only a daily close below 2.0451 sup wud signal recovery fm last week's low at 2.0352 has indeed ended at 2.0699 n yield another fall to said sup later.

On the upside, a rise abv 2.0699 wud bring a stronger retrace. of this month's selloff fm 2.1162 to 2.0757 (50% r of 2.1162-2.0352), however, 2.0845/53 (chart res n 62% r) is expected to remain intact. We are standing aside for now.

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