Cable dipped to $1.3054 early Tuesday on......>

CABLE: Cable dipped to $1.3054 early Tuesday on the USD bid, then bounced to

$1.3087 in reaction to strong UK wage data, before falling again.

- Later the Evening Standard reported that the EU has warned against too much

optimism re: Brexit red lines, pressuring GBP/USD to fresh session lows of

$1.2965, before a recovery was aided by Irish PM Varadkar stating that a Brexit

deal may be achieved within weeks, in a BBC interview. Jittery trade continued

through the remainder of the day with the rate closing above $1.3000.

- Late reports from both the BBC & ITV pointed to growing disdain towards PM May

from the ERG Eurosceptic arm of the Conservative Party, although the BBC

suggested that the group wasn't planning any imminent action against her via a

leadership contest, while the Telegraph suggested that May could face a

leadership coup from the group within "days."

- The rate last deals at $1.3020, with the bullish case intact following the

close above $1.3000 and the 50-DMA ($1.2998), bulls now target the 100-DMA

($1.3194). Bears look for a move back below $1.30 to suggest the recent gains

have marked a false break and shift the focus back to the $1.28 area.