Under renewed downside pressure at the........>

CABLE: Under renewed downside pressure at the start of the week, the rate

breaking below Friday's base of $1.2474 and extending its corrective pullback

(away from its June10 high of $1.2813) to $1.2455. Support noted at $1.2450/45,

a break to expose $1.2410/00 ($1.2408 rising support off Mar20). Sterling

continues to feel the negative effects from Friday's GDP release, with general

risk aversion (caused by fresh COVID-19 outbreaks in China) prompting a further

paring of recently entered longs, mainly driven by the positive risk outlook via

equity markets . 

- Focus today on the Johnson-von der Leyen Brexit trade talks, though comments

from Gove last week suggested UK not looking for an extension past Dec31. BOE

meeting Thursday, most expect no change in rates, but an increase in QE.

- EUR/GBP also reflecting the pressure on sterling as the cross edges up to

challenge Thursday's high of Gbp0.9015, a break to expose the topside of the

1.0% 10-dma envelope, which currently comes through at Gbp0.9030.