GBP futures: sentiment remains weak

According to CME Group’s advanced figures for GBP futures markets, open interest rose for the seventh day in a row, this time by almost 7.6K contracts on Tuesday vs. Monday’s final 244,091 contracts. In the same line, volume partially reverted yesterday’s drop and rose by around 16.7K contracts.

GBP/USD door open for further pullbacks

Cable’s descent continues to be amidst rising open interest, a bearish sign that points to further downside in the near term. Tuesday’s pick up in volume reinforces this view, which should find immediate target in at 1.2675 (November 2016 high).