### POV - POSSIBLE CAP IN CABLE OR A PUSH.....>

CABLE: ### POV - POSSIBLE CAP IN CABLE OR A PUSH HIGHER?

Cable is approaching the $1.3657 (Sept20 high) technical resistance. This level

is the highest that the pair has seen since the Brexit vote in June last year.

- Reports of an eminent breakthrough in Brexit talks have been circulating and

have injected some hope and buoyancy to cable. However, there are many hurdles

still ahead for PM May and her team. Even if a deal is agreed on the issue of

citizens' rights, the Irish border and jurisdiction of the ECJ after the UK

leaves the EU could pose as possible sticking points in the negotiations.

- It may not be only up to the Sterling in terms of determining, which direction

cable moves. Although, there has been positive news on the Brexit front, the

ramifications of the US Senate passing the tax bill could mean a stronger dollar

in the future. This could dampen cable strength inhibiting the pair from

extending higher.

- However, on the flip-side if a substantial agreement was to be reached on

Brexit negotiations there is a possibility that the $1.3657 could be breached

with $1.4000 possibly being on the horizon.