GBP futures: further downside likely

Open interest in GBP futures markets dropped by just 854 contracts on Wednesday vs. Tuesday’s final 194,998 contracts, as per the latest advanced figures from CME Group. Volume, instead, increased by around 36.2K contracts, extending the erratic activity so far this week.

GBP/USD faces support at 1.2812, 55-day SMA

Yesterday’s negative performance in Cable was accompanied by irrelevant activity in open interest while volume reverted the previous drop. That said, a deeper retracement in GBP/USD could see the low-1.2800s tested, where sits the 55-day SMA.