After failing to break above the 200-HMA at...>

CABLE: After failing to break above the 200-HMA at $1.3221, cable has slid

through its 21-DMA at $1.3200 and last trades at $1.3194, 15 pips worse off.

Worth mentioning on Sunday PM May invited leading Tory Brexiteers and some of

her cabinet colleagues for talks re: Brexit. This comes after the Times reported

that a group of senior Brexiteer ministers were plotting to force May out of

office by threatening a mass resignation, if she refuses to step down.

- On Friday, the rate finished 102 pips higher, after the EU agreed to push back

the "cliff-edge date," when the UK leaves the bloc by default, to April 12. If

PM May's deal is adopted by that time, the UK will leave the EU on May 22; if

not, the UK must decide between a no-deal Brexit, requesting a long Brexit

delay, and revoking Art. 50 by April 12.

- Bears look to the 1.0% 10-DMA envelope/Friday's low of $1.3085/81. Conversely,

bulls look for a clean break above the aforementioned 21-DMA & 200-HMA before

challenging Friday's peak at $1.3224.

- UK focus this week falls on comments from BoE Dep Gov Broadbent due Tuesday

and Q4 GDP (f) due Friday. Elsewhere, Brexit matters will continue to dominate.