After touching a post-Brexit high of..........>

CABLE: After touching a post-Brexit high of $1.4377 on Tuesday, a mix of poor

economic data, stretched positioning and profit-taking has pulled GBP/USD lower

by close to 1.4%. Is this the beginning of a deeper correction or a blip in a

longer-term move higher?

-This drop in GBP has played into the hands of options markets, in which hedging

activity has been sizeable over the past month, but spot prices seem to have

overshot.

-71% of GBP/USD call options bought since March 19th are, or have been, in the

money, having strike prices below the post-Brexit referendum high of $1.4377.

This suggests there remains little interest in the pair moving any higher. As a

result, options traders may be heavily exposed on any move back above the recent

highs and into pre-referendum territory.

-See MNI Analysis: Has Sterling Run Out of Steam? email For full details.