Modest GBP strength on the back of the.....>

STERLING: Modest GBP strength on the back of the BBG sources headlines re:

Labour & SNP looking at a late October election have pared.

- Cable last unch. at $1.2335, a move through yesterday's high ($1.2354) would

have bulls looking to the July 17 low at $1.2382, while bears need a break back

below the 50-DMA ($1.2302 today) to reignite the downside impetus.

- EUR/GBP is little changed, sitting just below GBP0.8950. Bears need a

convincing break below the nearby July 26 low at GBP0.8946 to open the way to

the 50% retracement of the May 6 - Aug 12 rally/Jul 25 low at GBP0.8908/8892.

Bulls need to reclaim GBP0.9000 to allow them to set their sights on GBP0.9086,

the Sep 4 high.

- Political developments remain front and centre ahead of the parliamentary

suspension, which is set to go into effect next week.