GBP futures: upside poised to continue, but…

CME Group’s advanced figures for GBP futures markets showed open interest increased by around 10.3K contracts on Wednesday vs. Thursday’s final 239,409 contracts, recording the third consecutive build. It is worth mentioning that open interest went up in 9 out of the last 10 sessions. Volume, instead, decreased by 14.7K contracts, showing the downward trend is far from abated.

GBP/USD targets the 200-day sma around 1.3590/1.3600

The rally in Cable stays well and sound so far this week, always backed by rising open interest and with the next target at the key 200-day sma in the upper 1.3500s. However, the persistent decline in volume threatens the idea of further upside, at least in the short-term horizon.