GBP Futures: a deeper retracement looks unlikely

CME Group’s flash data for GBP futures markets noted investors added just 679 contracts to their open interest positions on Wednesday, reaching the second build in a row. On the other hand, volume shrunk by around 13.1K contracts, extending the choppy performance.

GBP/USD rallies appear limited

Cable’s rebound to levels above the 1.2500 handle and subsequent correction lower was on the back of the continuation of the up trend in open interest while volume remains erratic. That said, extra gains are expected to face strong resistance beyond 1.25, while another test of the 1.2400 neighbourhood seems to have lost some traction.