GBP futures: consolidation ahead?

CME Group’s preliminary data showed open interest in GBP futures markets contracted by more than 3K contracts on Wednesday vs. Monday’s final 201379 contracts.

Further cautiousness appears likely

Cable’s doji-ish candle on Wednesday prompts at least some caution while a continuation of the sideline theme around current levels seems likely in the near term at least.

Shrinking open interest coupled with rising prices point to the emergence of short covering fuelling the upside, although in this case the upside lacks of conviction while the trend in open interest is far from clear.