$1.3000 Remains a Hurdle

Cable continues to enjoy some risk buoyancy, the rate able to make a show above $1.3000 in Asia (though only to $1.3001) before it settling back around $1.2990. US Trump's return to the White House provided an added lift for risk though cable remains wary of moving too far above $1.3000 with the chance of negative Brexit negotiation headlines prompting a sharp reversal(a positive headline on the other hand could provide for a sharp rise). The 55-dma comes through today at $1.3017, which, if rate can break and close above, would support further technical upside potential. PM Johnson is due to deliver a key note speech at today's closing of the Conservative conference(1130BST). UK Construction PMI data due at 0930BST, though not normally a market mover. US Trump health, Brexit negotiation headlines and COVID spread remain market drivers. Cable support seen at $1.2980/73, $1.2965/60, $1.2940/35 ahead of $1.2900. Resistance $1.3000/10, $1.3017/20, $1.3035-50.

MNI Techs: GBPUSD technical signals remain bearish and recent gains continue to be viewed as a correction. The pair however continues to hold onto recent gains and attention remains on 1.3007, Sep 16 high. A break of this level would undermine recent bearish developments and instead highlight a stronger bullish theme opening 1.3079, a Fibonacci retracement. Price needs to trade below 1.2806, Sep 30 low to expose the bear trigger at 1.2676, Sep 23 low.