GBP futures: bullish attempts still unconvincing

CME Group’s preliminary figures on open interest in GBP futures noted contracts have dropped by more than 77K to 194,289 on Wednesday from 271,496 contracts the previous day.

Fade occasional rallies

In light of the data above, short-covering is also driving the sentiment around Cable’s price action as of late, while fundamental demand staying absent for the time being.

Hence, GBP/USD is prone to further pullbacks, which should face initial test around yesterday’s lows in sub-1.2600 levels. Wednesday’s spike just above 1.2700 the figure could be deemed as an interim hurdle then.