GBP/USD comfortably held above $1.31 on.......>

CABLE: GBP/USD comfortably held above $1.31 on Tuesday and squeezed to $1.3159

on reaction to UK PM May stating that she will lead Brexit negotiations with the

EU, while the Brexit department will instead focus on preparations for a no-deal

Brexit.

- Cable eased to $1.3128 during the NY afternoon before recovery to $1.3152,

settled around $1.3145 into the close. Early demand in Asia allowed rate to

nudge back to $1.3158(seen on USD/JPY sales at the Tokyo fix) before it eased

off to $1.3138 ahead of Europe. USD/CNY saw onshore sellers emerge into Europe,

the action took USD/CNH back below Cnh6.80 and in turn prompted general USD

sales. This allowed cable to break above the $1.3158/59  area of recent highs to

$1.3170(1.618% swing of the earlier Asia pullback from $1.3158 to $1.3138).

$1.3178 1.618% swing $1.3159-28. A break here to expose next band of resistance

seen between $1.3195/1.3210. 

- Focus remains on Brexit developments & next week's BOE MonPol decision, with

Commons now in summer recess.

- Finance for House Purchase at 0830GMT. CBI Retail Sales data at 1000GMT.