GBP Futures: Recovery could lose momentum

In light of advanced readings for GBP futures markets from CME Group, investors trimmed their open interest positions by more than 1K contracts on Friday, reversing three builds in a row. In the same direction, volume went down by nearly 24.2K contracts, fading the previous uptick.

GBP/USD now targets 1.2530, the 55-day SMA

Cable extended the upside at the end of last week amidst shrinking open interest and volume, hinting at the probability that the ongoing move up could run out of steam in the short-term horizon. Against this, the 55-day SMA near 1.2530 emerges as the next interim hurdle.