Volatile trade Tuesday saw cable rally to a...>

CABLE: Volatile trade Tuesday saw cable rally to a high of $1.3087 on back of

softening Brexit tones from the EU and better than forecast UK earnings data.

However, USD recovery in a paring back of earlier risk-on trade saw rate

eventually touch a pullback low of $1.2965 in early NY before it clawed its way

back up to $1.3040 into the close. This renewed sterling strength didn't last

into Asia as the USD regained some general poise and traders also reacted to

negative UK political reports in the press. Daily Telegraph ran a report that

around 50 law makers have met to discuss how and when they could oust PM May

from power, voicing concerns over her Chequers deal, which if brought back to

the UK parliament could act to split the Conservative party. Cable drifted to a

low of $1.3005 ahead of Europe, before getting an added shove in the new session

to $1.2999. However, the pound continues to find demand into the dips, EU

Juncker comments that EU will stick firmly to Brexit divorce demands softened as

he added that EU wants a close future partnership with UK aiding support. Cable

support $1.2994-83(61.8%-76.4% $1.2965-1.3041) ahead of Tuesday's low of

$1.2965. Resistance $1.3040. Focus on Brexit headlines.