GBP/USD shed a handful of pips this...........>

CABLE: GBP/USD shed a handful of pips this morning, after the release of a

Telegraph story suggesting that UK gov't expect that "there won't be a deal"

with the EU by the end of the Brexit transition period. The rate has ticked away

from the session low of $1.2717 and last sits at $1.2729, marginally shy of

neutral levels, with sterling still slightly lagging its G10 peers.

- That being said, cable operates ~40 pips below a six-week high printed

yesterday after the greenback turned its tail, allowing the rate to take out

resistance levels at $1.2688 (Jun 16 high) & $1.2704 (200-DMA).

- UK Chancellor Rishi Sunak warned yesterday that some gov't departments will

face "tough choices" and seek savings after the coronavirus pandemic.

- A rebound above yesterday's high of $1.2768 would open up Jun 10 high of

$1.2813, a key near-term resistance. Bears look for a dip through yesterday's

low of $1.2650, before targeting Jul 14 low of $1.2480.

- On the data front, UK focus moves to retail sales & preliminary readings of

Markit PMIs, due Friday. Thursday will see a speech from BoE's Haskel on the

economic effects of Covid-19.