Sterling retains a soft feel, following.......>

CABLE: Sterling retains a soft feel, following Tuesday's break below $1.2481 to

mark a fresh YTD low of $1.2440 ($1.2441 Jan03), though managed to hold off a

challenge on key tech support at $1.2439 (76.4% of the recovery off the initial

Brexit vote react of $1.1841 to its eventual recovery high of $1.4377 in Apr

2018). Recovery effort off that low was capped at $1.2477 in NY before rate

settled above $1.2460 into the close. Johnson/Hunt televised debate seen as a

draw, though Johnson remains the lead contender to be the next Conservative

leader and UK PM. Johnson seen more open to a no-deal Brexit than Hunt, though

Tuesday's vote in Parliament could make this difficult to achieve. Cable saw an

opening high of $1.2470 in thin trade before it drifted off to $1.2451 in Asia.

Early Europe recovery to $1.2462 met another round of sales as it was pressed

back to $1.2445. 

- Support remains at $1.2440/39, a break to expose $1.2400. The $1.2400 level is

suggested to hold exotic option interest which, if true, could draw defensive

demand ahead. Resistance $1.2477/81 ahead of $1.2500. 

- UK GDP, IP and Trade at 0830GMT. Fed Powell Testimony at 1400GMT seen key.