GBP futures: scope for deeper pullback

CME Group’s flash figures for GBP futures markets noted open interest rose by more than 7K contracts on Tuesday from Monday’s final 212,691 contracts. In the same direction, volume rose by almost 6.4K contracts.

GBP/USD focused now on 1.2811

Cable continues its march south on Wednesday, recording fresh YTD lows in the 1.2900 neighbourhood and opening the door at the same time for further retracement amidst rising open interest and volume. The next target should be 1.2811 (monthly low July 2017).