Corrective pullback away from Friday's late...>

CABLE: Corrective pullback away from Friday's late high of $1.2981 extended to

$1.2887 in early Europe Monday on virus linked risk aversion. Recovery off the

lows accelerated in NY as US assets came under pressure, equities were marked

sharply lower, UST yields eased, which in turn saw the USD lose ground across

the board as markets took stock of COVID-19 spread (affects on global growth)

and the Bernie Saunders effect following the Iowa caucus. Cable rallied to

$1.2938, dipped to $1.2913 before closing the day around $1.2928. Cable's

recovery trailed the stronger bounce in EUR/USD which in turn saw EUR/GBP edge

away from its key 10-dma (Gbp0.8352) to make a show back above Gbp0.8400. Cable

marked an early low in Asia of $1.2915 in reaction to Wall Street's fall, but a

reassessment of the COVID-19 risk allowed for some paring of risk off positions,

allowed cable to correct to $1.2942. Virus developments remain a key driver for

markets. For the UK, CBI reported sales at 1100GMT draws attention, market

median 3, up from its flat reading last.

- Cable support $1.2915/10, $1.2900, $1.2887. Resistance $1.2942, $1.2954,

$1.2980, $1.3000.