GBP/USD has come under pressure over the......>

CABLE: GBP/USD has come under pressure over the last 20 mins or so, perhaps

aided by a BBC report which noted that "several ministers expressed significant

doubts about the PM's preferred Brexit plan from the start." The article goes on

to note that "two ministers believe there is little chance the deal would get

Parliament's backing. One of them said it was self-harming for the PM to keep

pursuing the same strategy." This comes after EU reportedly rejected the latest

proposal presented by PM May, with reported threats of further impending cabinet

resignations, and a potential delay of the upcoming key cabinet meeting.

Although EU's Juncker thinks that the UK & EU are edging closer to a "definitive

Brexit deal that will be concluded in the coming weeks."

- While there isn't anything particularly new in the BBC story the combination

of time pressure and relatively low liquidity at this time of day may have

allowed cable bears to capitalise, with the rate hitting lows of $1.2901, where

we trade last. Hourly support is located at $1.2910/1.2900, with the lower bound

being tested as mentioned. A break would open the 61.8% retracement of the move

from $1.2696 to $1.3175 at $1.2879, followed by the October 29 high at $1.2853.