CME Group’s advanced data for GBP futures markets noted investors trimmed their open interest positions by almost 2.8K contracts on Friday, reaching the second drop in a row. Volume followed suit and also shrunk for the second consecutive session, now by nearly 123K contracts.
GBP/USD still looks to 1.30, but…
Cable’s impressive upside since early October appears to have met a tough nut to crack in the vicinity of the 1.30 handle so far. That said, Friday’s advance was in tandem with shrinking open interest and volume, opening the door for some correction/consolidation in the near term. The current overbought levels of the pair also reinforce the idea that a reversion of the up move could be in the offing.
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