GBP futures: probable U-turn near term?

CME Group’s preliminary figures for GBP futures markets showed open interest dropped by more than 1.1K contracts on Monday vs. Friday’s final 228,176 contracts. In the same line, volume shrunk by around 9.1K contracts, recording the third consecutive decline.

GBP/USD scope for a test of 1.2660

Cable’s pullback at the beginning of the week was on the back of declinining open interest and volume, allowing the probability of a small squeeze higher in the near term. However, the broader bearish view keeps pointing to a potential visit to YTD lows in the 1.2660 region.