Tuesday saw the UK Govt defeated three........>

CABLE: Tuesday saw the UK Govt defeated three times, parliament voting for an

amendment that allows them to vote for a revised plan should PM May's Brexit

deal get voted down on Dec11. Cable was sold down to a fresh 2018 low of

$1.2659, the move accelerated as stops were fired off on the move below $1.2690,

though rate was able to settle back above $1.2700 through to the close($1.2724).

Brexit deal debate will begin, with 8-hours per day allotted until next week's

vote. Yesterday's vote, though a defeat for the Govt, is seen lessening the

chance for a no deal Brexit. General USD strength though Asia saw cable slide to

a low of $1.2672, aided in part by Sky reporting that the UK does not need to

pass legislation to revoke Article 50, with recovery attempts capped around

$1.2700. Aside from Brexit, which remains the key overall driver of sterling

strength, UK Services PMI(most important of the set) is due for release at

0930GMT, market median 52.5 vs last 52.2. Markets expected to thin through the

day, US closed to  respect former President George H. Bush passing. Cable

support $1.2660-50, a clear below could prompt stronger sales. Some technical

traders highlight $1.2439(76.4% $1.1841-1.4377). Resistance $1.2723.