GBP/USD has already shed 20 pips, last........>

CABLE: GBP/USD has already shed 20 pips, last deals at $1.3111. The rate remains

heavy after yesterday's sharp sell-off, sparked by a Telegraph report noting

that PM Johnson wants to legally rule out any extension to Brexit transition

period. GBP sales dragged cable to the levels from before the general election.

- As outlined in earlier bullets, there is a number of questions surrounding PM

Johnson's plan, including the potential for a court challenge against it.

- The evening star candlestick pattern completed yesterday does not bode well

for the bulls, with the 21-DMA/Dec 12 low of $1.3052/51 now in focus. A fall

below there would prompt bears to target the former resistance zone in the

$1.2973-3013 area. On the flip side, a bounce above the $1.3200 mark would draw

attention to the high of Dec 16 at $1.3422.

- The Queen's Speech outlining gov't policy for the upcoming parliament is due

on Thursday. On Friday MPs will vote on the Withdrawal Agreement Bill.

- The BoE will announce its latest monetary policy decision on Thursday. On the

data front, inflation figures are due later today, retail sales hit on Thursday

and current a/c balance comes out on Friday. BoE's Haskel speaks on Friday.