GBP Futures: scope for a near term rebound

CME Group’s advanced data for GBP futures markets noted investors scaled back their open interest positions by around 1.5K contracts, recording the fourth drop in a row on Friday. In the same direction, volume extended the choppy performance and went shrunk by around 35.6K contracts.

GBP/USD supported by the 200-day SMA at 1.2700

Cable dropped and is now rebounding from the 1.2770 region, or 3-week lows. Friday’s pullback was accompanied by declining open interest and volume, removing some tailwinds from a deeper retracement, at least in the very near term. That said, the next relevant contention emerges at 1.2700, where is located the 200-day SMA. On the upside, the bounce could extend to a Fibo retracement of the May-September drop at 1.2837.