GBP futures: interim top in place

In view of preliminary figures for GBP futures provided by CME Group, open interest decreased by over 2K contracts on Monday vs. Friday’s final reading at 208,002 contracts. Volume extended its decline, this time by almost 40K contracts.

Further decline lies ahead for Cable

Recent activity in open interest and volume paints a bearish picture for GBP/USD at least in the near term. In fact, declining price action in response to the dovish tone from the BoE and the subsequent recovery of the greenback put GBP/USD under extra downside pressure and opens the door at the same time for extra losses, reinforcing the idea that the 1.3270 area stays an interim top so far.