GBP Futures: Upside appears capped

CME Group’s preliminary readings for GBP futures markets noted open interest dropped by around 2.2K contracts on Wednesday, offsetting the previous build. Volume followed suit and shrunk by around 9.1K contracts.

GBP/USD faces resistance just above 1.2500

Extra gains in Cable look somewhat capped following Wednesday’s uptick amidst diminishing open interest and volume. Against this, GBP/USD faces a strong hurdle in the 1.2500 neighbourhood, which coincides with a Fibo retracement of the March steep drop.