Despite closing above Friday's high and the...>

CABLE: Despite closing above Friday's high and the 21-DMA, cable's momentum

faltered slightly on Tuesday, with last week's high ($1.2936) limiting the pair,

alongside a recovery in the DXY on the back of a stronger than exp. U.S.

consumer confidence print. The rate last deals at $1.2867.

- Comments from UK PM May, stating that a "no deal Brexit deal wouldn't be the

end of the world" had little lasting effect on the cross on Tuesday. - Elsewhere

reports that BoE Gov. Carney has been asked to extend his term by 1 year were

downplayed by the UK Tsy.

- From a technical perspective a break above last week's high would expose the

July low ($1.2958) ahead of the 50-dma ($1.3050). Failure to hold $1.2800 would

allow downside momentum to build with bears targeting the $1.2750 level and then

the Aug 15 low ($1.2662).

- There is little in the way of tier 1 UK data this week so focus is likely to

fall on Brexit/political developments.