GBP Futures: further downside not ruled out

CME Group’s advanced data for GBP futures markets noted open interest shrunk for the second session in a row on Tuesday, this time by nearly 1.5K contracts. On the other hand, volume reversed three consecutive drops and gained around 26.2K contracts.

GBP/USD remains well supported near 1.2500

Cable continues to grind lower so far this week. Yesterday’s negative price action was in tandem with shrinking open interest, which should remove some tailwinds from the le leg lower. Higher volume, by contrast, keeps favouring a test of lower levels.