GBPUSD touched fresh ytd lows of 1.2480.......>

CABLE: GBPUSD touched fresh ytd lows of 1.2480 yesterday following source

reports that 48 no-confidence letters have been submitted to the 1922 Committee

to trigger a Tory leadership vote. We will no doubt have clarification over this

today with further Brexit headlines expected from PM May's last ditch visit to

Brussels. Recovery efforts have so far remained shallow, GBPUSD rallies have

failed to build above $1.2500 and keeps pressure toward the downside. A break of

$1.2480 opens the 76.4% retracement of $1.1841-1.4377 at $1.2439, expect support

behind on approach to $1.2400 ($1.2404 - April 11 2017 low). Near-term

resistance is seen at $1.2541/60 from the 38.2%/50% retracement levels of

$1.2639-1.2480. EURGBP comfortably holds above Gbp0.9050 targeting a move to the

heavily congested Gbp0.9090/00 zone. This area holds resistance from the ytd

high & E1.10 GBPEUR equivalent, which some have mentioned as a key psychological

level.