Initial positive sterling react to the........>

CABLE: Initial positive sterling react to the Conservative election win (well

forecast by the exit polls late Thursday) had seen cable trade to a high of

$1.3514 before profit take sales countered and press rate back to an intraday

low Friday of $1.3306. With these election linked spec positions now settled the

pound began to pick up fresh demand in Asia with cable extending its recovery

back above $1.34, trading on to $1.3422. Move also aided by a better general

risk tone after release of firm China data and USD/CNY fixed back below Cny7.00.

Technical resistance seen at $1.3435(61.8% retrace level of Friday's pullback

from $1.3514 to $1.3306), with the top of the 2.0% 10-dma envelope coming in

close behind at $1.3441. Support seen back toward $1.3300. UK flash PMI's

released at 0930GMT and will be in focus, especially Services. For this week

market will watch the formation of Johnson's cabinet. Parliament returns Tuesday

with Queen's speech due Thursday. Withdrawl Bill could be put to Parliament

Friday. UK Jobs Tuesday, CPI Wednesday, with Retail Sales and BOE Thursday.