Cable has consolidated at ~$1.2970 in early...>

CABLE: Cable has consolidated at ~$1.2970 in early Asia-Pacific trade after a

~100 pip slump on Monday. The pair's decline at the beginning of the week

occurred on the back of political uncertainty surrounding Brexit, as Theresa May

faces pressure both from the EU and some Tory MPs who threaten to withdraw their

support for the PM. 

- Markets continued to kick back on expectations that the UK and EU will reach a

Brexit agreement that satisfies all sides any time soon. A late-in-the-day

speech from PM May failed to prop up any confidence & GBP was the worst

performer in G10 FX as a result. 

- Cable bears seek a broader downside move beyond the Oct 4 lows at $1.2922

before targeting the 61.8% short-term retracement level at $1.2905. Bulls need

to close back above the psychological $1.3200 level to regain momentum and

challenge the Sep 20 high at $1.3298. 

- Focus this week falls on any Brexit fallout, BoE Gov. Carney's & BoE Chief

Economist Haldane's addresses today, as well as UK sovereign debt ratings by

Fitch and S&P on Friday.