GBP futures: further upside on the cards

CME Group’s advanced figures for GBP futures showed open interest on Friday increased by almost 11K contracts vs. Thursday’s 194,078 contracts. The increase in volume was significant, up to more than 131K contracts from around 88.5K contracts.

Cable’s bull run appears solid

Friday’s close in levels just shy of the key 1.3100 handle recorded fresh 10-month peaks. Despite the pair lost some vigour soon afterwards and is currently deflating to the 1.3080 area, the rising activity in both volume and open interest is signaling quite solid fundamentals behind the up move, which could well attempt to extend in the next sessions.

Risks to this view come from the Brexit talks scheduled to start this week along with some pick up in the UK’s political effervescence.