GBP futures: upside running out of steam?

In light of preliminary figures for GBP futures markets, investors added more than 3K contracts to their open interest positions yesterday vs. Friday’s final 174,939 contracts. On the opposite side, volume decreased by nearly 2.7K contracts, reverting the previous increase.

GBP/USD still capped by 1.3320/40

Cable’s rally to yesterday’s top in the 1.3280 area has been on the back of choppy activity in both open interest and volume, inferring that some consolidation is not ruled out in the near term, while further gains still appear capped by the 1.3320/40 band.

This area guards the 50% Fibo retracement of 1.3658-1.3017 and October 13/November1 peaks.