Cable saw a high Friday of $1.2707 on.........>

CABLE: Cable saw a high Friday of $1.2707 on Brexit enthusiasm, though this was

tempered into Monday trade which saw rate ease to $1.2516. Rate recovered to

$1.2650 before it eased to $1.2551 in late trade only to get lifted back into

Asia to $1.2637 (some reports rate traded at $1.2660 in thin conditions) as

market reacted to a report in the Daily Telegraph suggesting that a deal is

taking shape. Rate eased to $1.2603 but underlying optimistic tone kept rate

buoyed, revisited the early high before it eased again to $1.2615 into Europe.

Another day of headline watching to gauge developments in the Brexit

negotiations, the news remaining the key market driver and likely to overshadow

release of UK Employment data at 0830GMT. BOE Carney due to speak at

0830GMT(Parliamentary testimony), BOE Vlieghe at 1230GMT.

- Support $1.2600, stronger at $1.2580. Resistance $1.2650/60, $1.2700-10.