GBP futures: scope for further decline

Advanced data for GBP futures markets from CME Group showed open interest increased around 6K contracts on Friday vs. Thursday’s final 235,291 contracts, recording the fifth consecutive build at the same time. Volume followed suit, up by more than 36.4K contracts and reverting the previous small up tick.

GBP/USD door open for a test of 1.2700

Cable recent down move was accompanied by increasing both open interest and volume, paving the way for the continuation of the descent which should find initial contention in the 1.2700 neighbourhood, where sits January 2017 high.