Decent start for GBP in early Tuesday.........>

CABLE: Decent start for GBP in early Tuesday trade, with GBP/USD adding around

40 pips or so to top the 50-dma at $1.2467 and look to secure the fifth

consecutive session of gains. There's relatively little data or news behind

today's move, with USD selling the initial catalyst, but GBP is the

outperformer, translating to EUR/GBP narrowing the gap with mid-April lows at

0.8682.

- With the 50-dma topped, $1.2495 becomes near-term resistance (61.8%

retracement of the mid-April decline). Current gains should currently be

considered corrective, but the bullish case will firm with a rally above $1.2529

(the Apr16 high).

- In options space, volatility hedges have been the theme so far, typified by

the sizeable $1.2470 straddle that crossed in early European hours due to roll

off in one week's time. The position captures not only the Fed and ECB rate

decisions but also the expected release of details for the easing of the UK

lockdown from the newly-returned-to-work PM Johnson.