GBP has stuck to tight ranges in the.......>

STERLING: GBP has stuck to tight ranges in the main with cable last at 1.3910 &

EURGBP just shy of 0.8830, although GBPJPY has fallen afoul of broader JPY

strength.

- Brexit remains front & centre on the agenda, with more cabinet discord

dominating the overnight press after BoE chief economist Haldane sounded a

little more hawkish (again) on Tuesday. 

- In GBPUSD the failure to retake $1.4162 sees the 21-DMA @ 1.4032 now capping.

Daily studies are well placed for a fresh leg lower. Bulls now need a close >

$1.4086 to gain breathing room & > $1.4162 to confirm focus on 2018 highs and

the key 200-WMA ($1.4344) lurking above.

- In EURGBP hesitation ahead of the 200-DMA @ 0.8878 provides the impetus for a

break of 21 (0.8818) & 55 (0.8832) DMAs. Bears now look for a close < 0.8776 to

confirm focus on 0.8647-85 where the bear channel base & 2018 low are noted.

- Traders await Thursday's second estimate of Q4 GDP, with little scope seen for

any notable deviations in the headline, it is exp. that the breakdown will

garner the most attention.