GBP futures: upside appears limited

According to preliminary figures from CME Group for GBP futures markets, investors added more than 1.1K contracts to their open interest positions on Monday vs. Friday’s 182,229 contracts. On the opposite side, volume decreased by more than 33.2K contracts.

GBP/USD rallies could struggle around 1.3320

Cable is extending the downside for the second consecutive session so far today. The decline continues to be fuelled by increasing Brexit concerns, while UK’s inflation figures failed to ignite fresh buying interest around GBP.

Softer price action in combination with a pick up in open interest signals the likeliness of further pullbacks ahead. The backdrop of declining volume, however, prompts some caution over the bearish view.