GBP futures: bearish trend expected to pick up pace

According to CME Group, preliminary figures for open interest in GBP futures markets showed traders increased their positions by nearly 1.8K contracts on Tuesday vs. Monday’s 205,900 contracts. Volume rose by almost 21K contracts.

Cable faces potential deeper pullback

GBP/USD is posting decent gains so far today after four consecutive retracements, all backed by some M&A chatter. However, the bearish trend stays well and sound after the rejection from fresh cycle tops near 1.3270 seen during last week.

Declining prices amidst shrinking open interest are a sign of liquidation, while yesterday’s drop to multi-day lows to the mid-1.2900s has been accompanied by an increase in volume.