GBP futures: scope for extra pullbacks

Investors have scaled back their open interest positions in GBP futures markets by almost 11.6K contracts on Tuesday vs. Monday’s final 228,212 contracts, according to preliminary figures provided by CME Group. In addition, volume rose significantly by more than 41K contracts.

GBP/USD risks further weakness

Cable risks a continuation of the current negative stance following last week’s tops in the vicinity of the 1.4300 handle amidst a drop in open interest and quite a moderate increase in volume.

As usual, uncertainty around the Brexit negotiations and PM T.May’s government should cap gains in GBP/USD for the time being.