Recovery off last Thursday's (Mar21) low of...>

CABLE: Recovery off last Thursday's (Mar21) low of $1.3004 extended to $1.3224

through Friday trade, the move helped in part by the EUR reaction to the release

of poor EZ PMI data(EUR/GBP sold down to Gbp0.8533, off Thursday's high of

Gbp0.8723), as well as market perception that the UK was moving more toward a

soft Brexit, though No-deal is not off the table. According to Bbg charts cable

touched an extended high of $1.3230 in pre-Tokyo trade only to drift off to

$1.3184 with recovery efforts capped at $1.3200. Into Europe and rate has

extended the low to $1.3167, currently trading around $1.3180.

- Brexit remains the key driver for sterling. Events in focus this week include

PM May obligation to table another amendable motion in Parliament, with chance

she will announce another meaningful vote Tuesday. Lot of press comment over the

weekend and this morning suggesting PM May could garner support for her

Withdrawl Bill if she offers to resign ahead of the next stage trade

negotiations.  

- Support $1.3150/40, $1.3120, $1.3100. Resistance $1.3220/30, $1.3250.