GBP futures: further upside not ruled out

CME Group’s advanced data for GBP futures markets showed investors added more than 1.1K contracts to their open interest positions on Tuesday vs. Monday’s 180,833 contracts. In addition, volume followed suit, up by nearly 6.5k contracts.

GBP/USD rebound could test 1.3260/70

Cable is reverting two consecutive sessions with gains today, fading the earlier up tick to the 1.3220 area and holding on in the 1.3200 neighbourhood.

Tuesday’s up move and close above 1.3200 the figure was accompanied by rising open interest and volume, allowing at the same time a potential visit to the key 1.3260/70 band in the near term, coincident with a Fibo retracement of the 2017 climb and August’s peaks.

As usual, Brexit headlines, UK politics and the BoE should stay as the main drivers for Cable’s price action for the time being.