FX traders had a slightly delayed reaction to news that UK PM Theresa May will trigger Article 50 next Wednesday but Cable is now sliding on the headlines. However, with speculative positioning already at record lows, many are asking "why would a long-term trader sell the pound now?"

As Bloomberg's Mark Cudmore notes, it’s a question worth asking, because it seems that the vast majority of potential catalysts are skewed to be positive ones.

However, not everyone agrees that the bad news is all out. Goldman Sachs overnight noted thate have now unquestionably entered the 'lull' period of the month after a flurry of important G10 data releases and central bank meetings.

As the dust settles, short Sterling remains one of our favorite views. That is true both from a near-term tactical standpoint (where we target 0.90 on EUR/GBP in 3 months, from 0.87 currently) as well as on a longer, more structural horizon.

Trade accordingly.