GBP futures: further weakness likely

CME Group’s advanced figures for GBP futures markets showed open interest rose by around 8.5K contracts on Tuesday from Monday’s final 243,004 contracts. In the same direction, volume rose by almost 35.7K contracts.

GBP/USD eyes on 1.3040

Cable is prolonging its decline today, while the increasing volume and open interest reinforces the bearish prospects surrounding the Sterling. That said, the continuation of the down move in GBP/USD should meet the next relevant support in the 1.3040 region.