Recovery off Thursday's low of $1.2724........>

CABLE: Recovery off Thursday's low of $1.2724 continued Friday, the rate

touching a high in early NY of $1.2878 before it sank back to $1.2812, settled

around $1.2730 into the close. Consolidation through early Asia around $1.2830

as weekend press produced no major headlines on Brexit. However, rate did manage

to mark lows of $1.2817 before it recovered to $1.2843 into Europe. Sterling

direction remains on Brexit headline watch. Traders await to see if the

Conservative 1922 Committee has received the 48 letters needed to call a

no-confidence vote about PM May's leadership(The Sun has reported 42 letters

received). If this is announced it could be sterling negative, but if she wins

will provide a much needed boost, though for how long as attention will be

switched on to the Brexit draft proposal passage through Parliament. Plenty of

sterling pit falls along the way, though any positives could produce a nasty

squeeze on a market seen short sterling. 

- Cable support $1.2817, $1.2798, $1.2760/50. Resistance $1.2850, $1.2878.