GBP has extended Monday's rally on Brexit.....>

CABLE: GBP has extended Monday's rally on Brexit optimism. The recent presser

held by UK PM May & EU's Juncker pointed to no further negotiations, and the

temporary nature of the backstop, as well as the good nature of the backstop &

arbitrary measures if the good-faith of the backstop is breached if ever

enacted. There were seemingly no changes to the text of the Brexit deal itself.

This has resulted in at least some of the Eurosceptic wing of the UK's ruling

Conservative party remaining cautious over the "progress." BBC sources suggested

that AG Cox is "agonising" over whether to alter his legal advice on the deal.

- Cable touched reaction highs of $1.3289, but pared some gains, as eurosceptic

Tory MP Baker suggested that the changes fall short of exp. Cable last trades at

$1.3265, ~110 pips higher on the day. The early session high provides initial

resistance, with any break opening the Sep 20 high of $1.3298. Bears look to the

Jan 25 high of $1.3217, followed by the Mar 5 high of $1.3199.

- UK focus turns to industrial/m'fing production & trade bal due Tues, although

this will likely be overshadowed by the vote on the withdrawal agreement in the

Commons, with the process set to get under way around 19:00 London.