The long BABA / short cable trade is killing it

Cable falls to fresh lows as the referendum glow fades.

The way I see it, fast money is clearing out of the referendum trade and the pound has fallen to 1.6303 from as high as 1.6525 as the first results came in. That’s quite a “sell the fact” kinda fall.

I don’t think the trade is over yet. Most of the fast money will clear out today but the real money went into hiding two weeks ago and will be slower to move money back into Jolly Old England. In the week(s) ahead look for some stubborn bids in cable to put in a floor.

Where might that be? 1.6250 is the first level I’d watch, then 1.6175 and then 1.6050.