Sank through its Jul17 low of $1.2382.........>

CABLE: Sank through its Jul17 low of $1.2382 Friday, the release of better than

forecast US GDP providing the nudge, with recovery efforts through the day

proving to be difficult. Weekend press highlighted that the UK government were

gearing themselves up in preparation for a no-deal Brexit, Michael Gove, the

minister responsible for no-deal Brexit preparations, commented that the

government was working on the assumption that Brussels would not strike a new

agreement. This news placed sterling under fresh pressure into Asia, though

fairly mild, the rate pressed to an extended low of $1.2362 with tone remaining

heavy into Europe. Interesting to see if this move to play no-Brexit hard ball

with Europe will work, or maybe Europe will try to call Johnson's bluff. CBI has

suggested that neither side is properly prepared for no-deal. Conservative poll

standing gained a boost at the weekend which may open the chance for a snap

election. 

- Brexit headlines again provide main directional drive. Focus also on Wednesday

FOMC rate decision ahead of BOE MPC Thursday(market watching for dovish tones).

- Cable support $1.2362, stronger into $1.2350. Resistance ahead of $1.2400.