GBP futures: downside expected to be short-lived

CME Group’s preliminary figures for Friday’s open interest in GBP futures showed volume increased by 752 contracts vs. Thursday’s final 197,038 contracts, reverting at the same time two consecutive days with falling volume.

Support holding on in the upper 1.2800s.

Cable’s decline should not find extra steam for the time being, while the 1.2860/80 band should provide decent support initially. Flattening open interest in past sessions plus choppy price action keeps adding to the expected rangebound pattern in the short term horizon, with the interim up barrier emerging at recent tops above 1.3030.