GBP/USD last trades at $1.3231, almost 30.....>

CABLE: GBP/USD last trades at $1.3231, almost 30 pips better off, as sterling is

buoyed by the Sunday Times' report stating that the eurosceptic faction within

the Tory party may support PM May's Brexit deal, if the PM meets their key

demands, including a stronger language around the Irish backstop and making sure

that the backstop will not be permanent. Elsewhere, the Telegraph reported that

AG Cox "has abandoned attempts to secure a hard time-limit or unilateral exit

mechanism from the Irish backstop."

- The pair closed ~60 pips lower Friday, as it erased earlier gains on the back

of a batch of softer than exp. U.S. data around the WMR fix before ebbing lower,

as higher U.S. Tsy yields provided support to the greenback.

- Initial bullish attention is drawn to the 100-HMA at $1.3255 and a jump above

would bring the Sep 21 high of $1.3277 into view. Conversely, bears need a slip

through the 100-WMA at $1.3211, before challenging the $1.3200 figure.

- UK focus this week turns to domestic construction PMI due later today,

services/composite PMI due Tuesday. Elsewhere, central bank rhetoric will be

provided by BoE's Carney, Cunliffe, Saunders & Tenreyro.