Erases Pre-Christmas Gains After........>

CABLE TECHS: Erases Pre-Christmas Gains

After heading into the Christmas break on track to take out 1.2750, GBP/USD's

entirely reversed, erasing much of the progress made over the past fortnight.

This follows the inability of GBP/USD to hold above the 21-dma on a closing

basis, keeping the broader outlook negative. Bulls need a convincing break of

1.27 (series of previous lows) & the 21-dma to improve the short-term outlook. A

close above targets the 38.2% retracement level at 1.2744, ahead of the Dec

highs at 1.2840. Downside focus remains on a break of 1.25 & ytd low at 1.2478,

before challenging the Apr 11 2017 low at 1.2404.