Cable saw a react high of $1.3381 Wednesday...>

CABLE: Cable saw a react high of $1.3381 Wednesday as voting results in

Parliament appeared to edge the UK toward a soft Brexit(Parliament voted for a

motion to take no-deal off the table, though non-binding). Sterling lost its

shine in Asia as traders highlighted a headline in the Telegraph that Office for

Budget Responsibility says UK GDP will grow by just 1.2% this year, down from

October's prediction of 1.6%. Others suggested that algo trading more likely to

have moved to book profit, pressed rate back under $1.33 to $1.3240 in fairly

thin conditions. However, early Europe has moved into the dip and has edged rate

back above $1.3260. Attention now switches over to tonight's vote to extend

Article50 beyond the current legal date of Mar29th. Length of extension in the

hands of the EU. To extend EU will want definite proposals, ie second

referendum, general election with talk suggesting that PM May's withdrawl bill

will get another outing. Market await to see if the Attorney General clarifies

his standing on the backstop. 

- Cable support remains at $1.3240, stronger into $1.3200. Resistance $1.3300,

stronger between $1.3350/60 and into $1.3381.