Retains an underlying buoyant tone,...........>

CABLE: Retains an underlying buoyant tone, following Tuesday's sharp rally as

traders reacted to Brexit developments with outlook moving away from a no-deal

scenario. Focus has switched to the Cooper-Letwin amendment proposal(though this

could now be withdrawn) after PM May opened the door to a delay in Article50.

Cable traded to a high of $1.3288 Tuesday before it closed at $1.3250. Cable

slowly drifted off through Asia to $1.3233 but this was seen more as a reaction

to a paring back in risk due to reports of Pakistan shooting down Indian jets

over Kashmir. Early Europe has seen buyers emerge to take advantage of the dip,

have edged rate back to $1.3255. Brexit remains the key driver of sterling

direction. With no-deal being pushed back in favour of a softer Brexit has made

UK investments more attractive due to the value of the pound, with some sterling

short positions left exposed. Cable resistance seen at $1.3288/98, a break and

clear of $1.3300 to expose $1.3350. Support $1.3235/30 ahead of $1.3200.

- Wednesday will see latest round of non-binding Brexit votes in the Commons.

- UK data focus this week on Nationwide house price index Thursday & MFG PMI

Friday.