GBP futures: downside appears limited

CME Group’s preliminary figures from volume in GBP future markets saw open interest increasing by more than 700 contracts on Monday from Friday’s final 200,801 contracts.

Consolidation seems likely

Volume in GBP futures has flattened in recent sessions against a backdrop of a fresh top in the 1.3030 region vs. the greenback and the return of sellers soon afterwards. This could point to a formation of an interim top, while leaving at the same time some consolidation on the cards in the near term. Further pullbacks are expected to be shallow, however.