Extended its recovery rally on to $1.3770.....>

CABLE: Extended its recovery rally on to $1.3770 in late Asia and into the

European open but quickly reversed as sellers emerged to take advantage of the

move. Rate squeezed back to the $1.3740/35 area and is currently trading heavy

at writing. Sterling gained a boost Friday, allowed cable to play catch up on

Eur/Usd's strong rally, as market reacted to a report that Spain and the

Netherlands look to provide a soft Brexit due to anticipated costs a hard Brexit

could bring. Traders note that the EU Withdrawal Bill to return for Report Stage

in the House of Commons Tuesday. News that British Govt contractor Carillion to

take steps to enter compulsory liquidation could weigh on sterling with the

threat to the 43k employees.

* Support $1.3724(Asia low), $1.3700. Resistance $1.3770, $1.3804(61.8%

$1.5018-1.1841).