GBP/USD retreats from intraday high but stays mildly bid around 1.2050 during Wednesday’s mid-Asian session. In doing so, the Cable pair portrays the sluggish markets while taking clues from the options market and the British fundamentals to probe bulls by cautiously defending the bounce off a one-month low.

That said, one-month GBP/USD risk reversal (RR) dropped to -0.010, in favor of puts or bets according to the latest data provided by Reuters. With this, the daily RR dropped for the second consecutive day by the end of Tuesday’s North American session.

It should be observed that the weekly options market gauge prints a three-week downtrend with the -0.0425 being the latest print.

On the positive side, UK Prime Minister Rishi Sunak’s Cabinet reshuffle and mixed comments from the Federal Reserve (Fed) officials seem to favor the GBP/USD buyers.

Also read: GBP/USD appears optimistic on UK PM Sunak’s Cabinet reshuffle, mildly bid near 1.2050 amid mixed Fedspeak

However, a downbeat British economic forecast from the UK National Institute for Economic and Social Research (NIESR) seems to join the bearish RR to probe the cable pair buyers.

Also read: UK's NIESR cuts growth outlook for 2023, warns on living standards