Cable continued to lose ground through........>

CABLE: Cable continued to lose ground through Tuesday trade, following the

market reaction to press reports suggesting a hard Brexit was back on the

negotiating table. Rate extended the corrective pullback, away from the initial

election react which saw rate at $1.3514, to $1.3100 in NY, early Asia taking it

on to $1.3073 in a move suggested to have been GBP/JPY led. Rate recovered to

$1.3129 into Europe but underlying tone remains soggy. Several reports suggest

the corrective pullback seen as a mix of profit taking and weaker long positions

getting squeezed out, the Brexit reports aiding the move though buyers will

again be lurking into the dips. The earlier low held off challenging stronger

support seen into $1.3050, the base of the 1.0% 10-dma envelope coming in at

$1.3054, with the pre election dip low at $1.3051 just behind. A break of

$1.3050 could expose further long positions. Resistance $1.3134, $1.3177(23.6%

$1.3514-1.3073) ahead of $1.3100. 

- UK CPI due at 0930GMT. Outlook for further slippage to 1.4%yy.