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Monday saw GBP/USD extend losses as London....>

CABLE
CABLE: Monday saw GBP/USD extend losses as London traders came in. Sterling had
already underperformed all of its G10 peers in Asia-Pac hours, after PM Johnson
signalled willingness to take a hardline stance in trade negotiations with the
EU. A revision to UK Markit/CIPS M'fing PMI, which brought the Jan reading to
the neutral 50 level from the flash reading of 49.8, produced little reaction
amid aforementioned concerns over UK-EU trade talks. As anticipated, PM Johnson
& EU envoy Barnier laid out their negotiating mandates with each side appearing
reluctant towards any major concessions.
- As a result, cable shed 211 pips and sank through its 50-DMA, erasing all
gains registered in the wake of last week's BoE MonPol decision. It holds steady
at $1.2993, resting upon support from a trendline drawn off the Dec 23 low. A
break below $1.2988, where the trendline intersects, would give bears the green
light for targeting the Dec 23 low of $1.2905. Bulls look for a rebound above
the $1.3077 50-DMA, which would open up yesterday's high of $1.3215.
- Coming up this week, we have Markit/CIPS Construction PMI (today) & Services
PMI (Wednesday).

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