GBP futures: extra gains unlikely near term

Pablo Piovano FXStreet

In light of CME Group’s preliminary data for GBP futures markets, open interest decreased by more than 4.4K contracts on Monday - recording the third consecutive drop – vs. Friday’s 200,472 contracts. On the opposite side, volume rose by more than 12.1K contracts after two consecutive drops.

GBP/USD remains under pressure below 1.4030/70

Cable is struggling for direction today after three sessions in a row with gains. Shrinking open interest against the backdrop of declining volume are removing tailwinds from the current uptick in prices, leaving the outlook on GBP/USD fragile as long as it trades below the 1.4070/30 band, where converge February 26 high and the resistance line off 2018 tops.

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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