Continued to trade with a soggy feel..........>

CABLE: Continued to trade with a soggy feel through Wednesday trade, the rate

slightly extending its corrective pullback, away from initial election react

high of $1.3514, to $1.3060, just about paring all the election gains ($1.3051

Dec12 low and seen in a pre election long squeeze). Sell off was given added

weight by suggestions PM Johnson will legislate to prevent transition phase

extension beyond end of 2020, basically putting a hard Brexit back on the

negotiating table, though market was seen long with move lower given added

weight by the squeeze lower. Buyers suggested to be tentatively emerging into

the dips. Consolidation between $1.3072-91 seen through Asia with demand

emerging into Europe which has lifted rate to $1.3114. 

- Resistance noted between $1.3129/34, $1.3167 ahead of $1.3200. Support

$1.3060/50, $1.3010/00. 

- UK Retail Sales at 0930GMT provides the warm up ahead of the BOE MPC rate

announcement, though no change in rates/QE expected. Voting expected to remain

at 7-2, Haskel and Saunders the dissenters. Expect comment that BOE MonPol could

move in either direction in reaction to economic developments.