Despite the pullback in GBP from the recent...>

CABLE: Despite the pullback in GBP from the recent cycle highs so far Monday,

sentiment towards GBP has become increasingly bullish, with GBP/USD 1m risk

reversals touching the best levels since early 2018 as markets further price out

the likelihood of a disruptive exit from the European Union. Weekend press

reports were supportive, continuing to talk up the probability that the

government could clinch a cross-party approved Brexit deal with the opposition

Labour.

-Friday's close above the 1.3108 50-dma played into the hands of GBP bulls, with

1.32 in sight despite the modest pullback in prices Monday. Support kicks in at

the $1.3063 level (38.2% Fib of recent rise) and the 100-dma at $1.2992.

-This week is busy for UK data, with prelim Q1 GDP due on Friday alongside

industrial and manufacturing production data.

-GBP volumes should return to near normalcy tomorrow as London returns following

the early Spring Bank Holiday in the UK. Unsurprisingly volumes have been lower

than expected, with GBP/USD options seeing just over half the activity of a

normal session so far.