GBP Futures: scope for a rebound near term

CME Group’s flash data for GBP futures markets noted investors scaled back their open interest positions by nearly 1.1K contracts on Wednesday. In the same line, volume went down by around 13.6K contracts.

GBP/USD looks supported near 1.22

Cable’s daily pullback on Wednesday was in tandem with shrinking open interest and volume, opening the door for a potential squeeze higher in the very near term. Recent lows in the 1.2200 neighbourhood, in the meantime, have emerged as a strong support.