• Cable has traded a 25.5 pip range thus far Monday; 1.2562 = intra-day low

• Offers pre-1.26 capped GBP/USD at one-week peak of 1.2592 on Friday

• Bids likely pre-1.2500 if pair drops back towards 1.2502-06 (Dec 26-27 lows)

• There is a big 1.2500 option expiry Thursday (Jan 2); billion pound strike

• Pound peers into crystal ball and sees it's hard for Labour

• US may hit new debt limit as early as Jan 14, says Yellen

GBPUSD

(Robert Howard is a Reuters market analyst. The views expressed are his own)