Sterling retained a heavy feel though.........>

CABLE: Sterling retained a heavy feel though Friday trade, with market focusing

on Brexit transition talks. David Frost's comments on EU-UK FTA talks, and the

EU's chief negotiator Michel Barnier, were similarly downbeat on the third round

of talks that took place this week. Barnier said the positions of the EU and UK

are extremely divergent, and that the UK side refuse to engage in conversation

about governance or level-playing field provisions. Cable dropped through key

technical support at $1.2167 in early NY, finding initial support at $1.2150.

Release of poor US Retail Sales only provided slight respite, rate bounced to

$1.2193 before it reversed and continued its retreat to $1.2114. EUR/GBP also

reflected the general pressure on the pound as it broke outside of its 1.0%

10-dma envelope(Gbp0.8881), pushing up to Gbp0.8933, settling back around

Gbp0.8920 ahead of the weekend.

- Weekend press in the UK will be watched for Brexit analysis to affect Monday

trade into Asia.

- Support $1.2114, $1.2100, $1.2080, $1.2050. Resistance $1.2150, $1.2166.