GBP Futures: upside momentum under pressure?

Pablo Piovano FXStreet

CME Group’s advanced figures for GBP futures markets noted investors scaled back their open interest positions by just 148 contracts on Friday. Despite it was a small drop, it was the third one in a row. On the other hand, volume increased for the second consecutive session, now by around 66.8K contracts.

GBP/USD now looks to the 200-day SMA above 1.27

Cable has briefly surpassed the 1.27 handle on Friday – where sits the key 200-day SMA – amidst rising volume and declining open interest. That said, while price action around the Sterling is expected to remain volatile due to Brexit developments, shrinking open interest could lead to the loss of some upside pressure in the near term.

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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