GBP futures: upside might take a breather

Preliminary data for GBP futures markets from CME Group noted open interest shrunk fort the first time after three consecutive gains by around 2.5K contracts on Tuesday vs. Monday’s finally 232,861 contracts. Similarly, volume went down significantly by more than 82K contracts extending the weekly drop.

GBP/USD still targets 1.41 and beyond

Cable’s up move still appears healthy, although the recent decline in both open interest and volume begs some caution in the near term. In addition, yesterday’s ‘inside day’ could be indicative of some respite in the up trend. That said, the imminent BoE event and progress on the Brexit front should be crucial for Cable.