GBP Futures: recovery lacks conviction

In light of preliminary figures for GBP futures markets from CME Group, investors trimmed their open interest positions by around 1.5K contracts on Friday, prolonging the erratic performance. In the same direction, volume went down by nearly 23.6K contracts.

GBP/USD still eyes a test of the sub-1.20 region

The recent up move in Cable was in tandem with shrinking open interest and volume, removing tailwinds from the correction higher and prompting markets for a potential resumption of the downtrend. Against this backdrop, a move below the 1.20 handle looks increasingly likely.