GBP futures: further pullbacks not ruled out

In light of preliminary data from CME Group for GBP futures markets, open interest decreased by more than 4.9K contracts on Thursday from Wednesday’s 191,255 contracts. Volume followed suit, down by almost 3.2K contracts.

GBP/USD potential visit to 1.3260

Cable’s continue to trade in a choppy fashion so far this week, keeping the lower bound of the recent range. However, declining volume coupled with lower prices and contracting open interest all signals that further liquidation by traders remains in play, and thus it cannot be ruled ouit a test of the next relevant level in the 1.3260/70 area, August’s peaks.