"We are prepared to offer a partnership.......>

CABLE: "We are prepared to offer a partnership with Britain such as has never

been with any other third country" were the words that supported GBP on

Wednesday, as EU Brexit negotiator Barnier's comments allowed cable to finish

above $1.30 as mkts started to price in the chance of a more favourable outcome

to UK/EU Brexit negotiations. Subsequent comments from the German Foreign

Ministry briefly weighed, as it noted that there will be no special rules for

the UK post-Brexit, but the rate went on to make fresh highs in late dealing.

GBP's rally puts the pair just shy of the 50-DMA ($1.3042), last ~$1.3030. 

- From a technical perspective the pullback from Tuesday's high bottomed out

below $1.2850, and the move was short-lived. With the near-term top of $1.2936

now seemingly in the rear-view mirror, the aforementioned 50-DMA is the one to

watch, with a close above confirming that a solid base is forming. Conversely,

failure to hold $1.2900 would see downside momentum build with bears targeting

the $1.2750 level, followed by the Aug 15 low ($1.2662).

- There is little in the way of tier 1 UK data this week so focus is likely to

fall on Brexit/political developments.