Release of strong flash UK PMI's Friday.......>

CABLE: Release of strong flash UK PMI's Friday provided a sharp lift for

sterling, took cable up to $1.3173 but move quickly lost momentum. Market was

seen well positioned for such a reaction with profit take sellers quickly moving

in. Some suggest that despite this data market not entirely convinced that it

will prevent the BOE MPC from cutting rates on Thursday. The meeting remains

live. Cable dropped down to $1.3057 before recovery to $1.3085, closing the week

at $1.3073. Reports on the spread of the China coronavirus over the weekend

prompted risk aversion into holiday thinned markets Monday, USD/JPY was marked

lower at its open, the softer USD allowing cable to mark an opening high of

$1.3094 before cable played catch up and eased to an eventual low of $1.3052.

Rate recovered to $1.3066 into the European open, gaining a quick shove up to

$1.3077 but struggled to build. CBI Retail Sales Tuesday ahead of Thursday's

rate announcement/Inflation Report.

- Support $1.3050/40($1.3043 61.8% 1.2962-1.3173; $1.3042 55-dma). Resistance

$1.3090/1.3100.