GBP/USD last deals at $1.2616, a touch........>

CABLE: GBP/USD last deals at $1.2616, a touch higher on the day, after losing 29

pips yesterday. The pair moved lower in the London morning, pressured by

headlines re: Brexit form the UK and abroad. Prime Minister's Questions turned

into a very virulent discussion, while EU Commission VP Dombrovskis said that

Brussels sees the risk of no deal. However, cable reversed earlier losses in the

London afternoon, on the back of broader dollar weakness, but dived back

thereafter, as FOMC rate hike triggered USD rally. 

- Bears look to yesterday's low of $1.2607 and a fall through that level would

give them the green light for challenging the Dec 17 low of $1.2571. On the

topside, bulls need to jump back onto yesterday's peak at $1.2679 before

targeting the Nov 7 falling trend at $1.2690. 

- The BoE MonPol decision will be released later today, with no changes to the

policy rate expected. However, central bank rhetoric will attract attention,

especially in the context of Brexit. UK retail sales figures are also due

tomorrow and final Q3 GDP is due Friday, while news flow re: Brexit remains in

the spotlight.