GBP futures: rallies seen limited near term

Open interest in GBP futures markets shrunk by nearly 2K contracts on Monday, the first drop after three straight builds. In the same line, volume extended its choppy performance and decreased by almost 76K contracts.

GBP/USD supported by the 200-day SMA

Cable is prolonging its erratic march so far today amidst declining open interest and volume, paving the way for extra consolidation while it still remains contained by the key 200-day SMA, today at 1.2977.