GBP futures: upside has further legs

CME Group’s preliminary figures for GBP futures markets noted open interest rose by 5.2K contracts on Monday from Friday’s final 173,842 contracts. Volume, instead, dropped moderately by more than 24K contracts.

GBP/USD now targets 1.4200

Cable continues its march north unabated so far today, backed by rising open interest – a bullish signal – and at the same time paving the way for a visit to higher levels. Despite the bull run could extend to the 1.4200 handle and above, shrinking volume hints at the likelihood of a potential correction in the short term horizon.