GBP/USD: Weekly risk reversal drops the most in May
One-month risk reversal of GBP/USD, a gauge of calls to puts, drops the most in May, based on the weekly basis, by the end of Tuesday trading, per the latest data from Reuters.
This goes hand-in-hand with the cable pair’s recently sluggish performance around the multi-day top. That said, GBP/USD remains pressured around 1.2150 by the press time of Wednesday’s Asian session.
Risk reversal flashes 0.050 figures for the week ending on May
Cable drops on weak data, strong rise of EUR/GBP cross
Cable lost traction on Tuesday and fell around 100 pips, deflated by downbeat CBI survey of the retail sector and strong rise of EURGBP cross. Fresh weakness moves focus to the lower boundary of the range in which the price action moves for the sixth straight day.
Long upper shadows of daily candles points to strong headwinds bulls face at 1.42 zone, following few spikes close to 2021 high (1.4238), but repeated failures to register a daily close above 1.4200 handle, generate initial signal of stall and possible pullback.