GBP/USD Options: Open positions in Calls rise for the second day

The GBP/USD extended the three-day winning this Thrusday morning, but has failed to take out 1.3268 (38.2% Fib retracement of 1.3657-1.3027).

On the daily charts, this rejection at the 38.2% Fib indicates bullish exhaustion, given the 10-day moving average is still sloping downwards.

However, options market indicates any dip is likely to be short-lived and the spot could revisit 1.34-1.35 soon.

The preliminary data published by the CME shows the open interest/open positions in the Calls options rose by a big number for the second day on Wednesday.

Call Summary 
Total ITM OTM
OI Chg OI Chg OI Chg
34,578 1,003 10,809 -52 23,769 1,055

 

Put Summary
Total ITM OTM
OI Chg OI Chg OI Chg
30,036 456 10,813 -87 19,223 543

 

  • Open positions in call options increased by 1003 contracts yesterday. That takes the total additions in Calls over the last two trading days to 2378 contracts.
  • On the other hand, the open positions in Puts increased by 456 contracts, which takes the total additions in Call over the previous two trading days to 844 contracts.

The bias is clearly bullish.

OI change

Source: CME

  • On Tuesday, 1.34 Strike Call added 900 contracts, while on Wednesday, 1.35 Strike Call added 952 contracts.

View

  • The dip to 1.3180-1.32 is likely to be short-lived.
  • The spot is more likely to take out 1.3268 (38.2% Fib R of 1.3657-1.3027) and test at least 1.3417 (61.8% Fib R of 1.3657-1.3027) over the next few weeks.

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