GBP futures: room for further downside

Open interest in GBP futures markets rose by almost 4K contracts on Monday vs. Friday’s final 222,515 contracts, reverting three consecutive drops, according to CME Group. In the same line, volume rose significantly by nearly 30.9K contracts.

GBP/USD still looks to 1.2660

After three consecutive daily pullbacks, Cable is now recovering the smile around the 1.2900 handle. However, yesterday’s decline was in tandem with rising open interest and volume, allowing for a potential test of October’s low near 1.2660.