GBP futures: extra declines on the cards

CME Group’s preliminary figures for GBP futures markets noted open interest rose by more than 1K contracts on Thursday vs. Wednesday’s final 228,970 contracts. On the other hand, volume shrunk by nearly 6K contracts, reverting two consecutive daily builds.

GBP/USD still looks to 1.2700

Cable is retreating for the second day in a row so far today amidst rising open interest and a down tick in volume, hinting at the likeliness that some consolidation lies ahead while a test of October’s low in the 1.2700 neighbourhood stays in the pipeline.