GBP futures: deeper retracements likely

According to preliminary figures for GBP futures markets from CME Group, investors added more than 2.6K contracts to their open interest positions on Monday from Friday’s final 240,369 contracts. Volume, instead, dropped by almost 70K contracts, adding to Friday’s drop.

GBP/USD now looks to 1.3040

Recent price action in Cable has been amidst rising open interest although volume decreased significantly. The likeliness of deeper pullbacks remains well on the cards with the next relevant level being the 1.3040 area, November lows.