Cable eventually succumbed to USD strength....>

CABLE: Cable eventually succumbed to USD strength Tuesday, the rate holding

toward the $1.2900 level due to a decent option expiry here, before it sank down

to $1.2859 post London fix. Move lower trailed EUR/USD, which in turn allowed

EUR/GBP to ease away from its 10-dma (Gbp0.8633) to Gbp0.8585, before cross

edged back to Gbp0.8600 into the close. Cable did manage to recover to $1.2892

before it closed the day at $1.2884. Consolidation seen through Asia, though

rate did mark a low of $1.2869 at the Tokyo open before it settled around

$1.2880 through the balance of the session. Some sterling buoyancy provided by

release of stronger than forecast headline UK Svcs PMI data, though component

parts provided some counter disappointment. Market focus remains on any

Brexit/Election development, with the BOE MPC announcement moving into view

Thursday.

- Data light calendar for the UK Wednesday.

- Support $1.2860/59, $1.2833. Resistance $1.2890/1.2900, $1.2920.