GBP Futures: a deeper correction in the offing?

Pablo Piovano FXStreet

CME Group’s preliminary data for GBP futures markets noted open interest increased for the second session in a row, now by nearly 13.1K contracts. In the same line, volume reversed the previous drop and rose by more than 100K contracts, the largest single day build since September 3^rd.

GBP/USD risks a drop to 1.2200

Cable keeps correcting lower following recent tops in the upper-1.2300s. Wednesday’s down move was amidst increasing open interest and volume, showing that fresh sellers returned to the market. That said, a probable move to the 21-day SMA at 1.2217 should not be ruled out for the time being.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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