GBP/USD picks up bids to extend corrective bound off intraday low to regain 1.0700 during the initial hours of Wednesday’s European session. In doing so, the Cable traders struggle to justify the broad US dollar strength, as well as pessimism at home, amid mixed concerns in the options market.

One-month risk reversal (RR) on the British pound (GBP), a gauge of calls to puts, snapped a two-day downtrend with a 0.160 figure, per the latest data provided by Reuters.

On a weekly basis, however, the options market gauge stays negative for the second time in a row to -0.685, considering the weekly data from Reuters.

The positive reading indicates call options are drawing a higher premium (option price) than puts or bearish bets.

In other words, the options market probes the bears after witnessing a heavy fall in the last few days.

Also read: GBP/USD bears approach 1.0600 in search of fresh record low, UK’s fiscal plans, Fed’s Powell eyed