GBP futures: upside appears capped

Pablo Piovano FXStreet

In light of Tuesday’s flash data in GBP futures markets provided by CME Group, open interest rose by more than 2K contracts vs. Monday’s 270,194 contracts. In another direction, volume dropped by near 23K contracts, recording the third consecutive pullback.

GBP/USD faces strong resistance at 1.3600

Cable’s recent up move has been justified by the hawkish shift in the BoE’s stance and the continuation of the selling pressure surrounding the greenback. However, diminishing volume and choppy activity in open interest as of late removed some tailwinds from extra upside, at least in the near term.

The area of fresh cycle highs just beyond 1.3600 the figure emerges as a considerable hurdle, and occasional bullish attempts are seen struggling around these levels.

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.

EUR/USD makes a U-turn, focus on 1.1900

EUR/USD’s recovery picks up further pace, prompting the pair to retarget the key 1.1900 barrier amid further loss of momentum in the US Dollar on Wednesday. Moving forward, investors are expected to remain focused on upcoming labour market figures and the always relevant US CPI prints on Thursday and Friday, respectively.

GBP/USD sticks to the bullish tone near 1.3660

GBP/USD maintains its solid performance on Wednesday, hovering around the 1.3660 zone as the Greenback surrenders its post-NFP bounce. Cable, in the meantime, should now shift its attention to key UK data due on Thursday, including preliminary GDP gauges.

Gold holds on to higher ground ahead of the next catalyst

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