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GBP/USD has dropped a dozen pips, extending...>

CABLE
CABLE: GBP/USD has dropped a dozen pips, extending Friday's 114 pip slump when
GBP found itself at the bottom of the G10 FX board, on the back of Brexit chaos
& disappointing retail sales data. Pair last $1.2860, as mkts absorb weekend
news flow, which points towards no substantial progress coming out of
cross-party talks re: Brexit. Reports suggest that UK PM May will try to
renegotiate the Irish backstop clause of her deal, with some saying she may want
to amend the Good Friday Agreement. Meanwhile, EU gov'ts are reportedly divided
over how long the U.K. could delay Brexit, while German Cll'r Merkel said
responsibility for an orderly Brexit does not lie solely with PM May. As a
reminder, Monday will see May presenting her "plan B" to lawmakers, amidst
doubts that she will reveal any notable deviations from the original plan. 
- Initial support noted at the Jan 17/16 low at $1.2832/25, ahead of the 55-DMA
at $1.2773. Conversely, bulls look to Friday's peak at $1.2994.
- Besides Brexit matters, UK highlights this week include labour mkt data due
Tuesday, as well as remarks from BoE's Broadbent on Wednesday, while BoE Gov.
Carney will be at the Davos WEF.

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