GBP Futures: upside seen losing traction

CME Group’s preliminary data for GBP futures markets noted open interest shrunk by almost 35K contracts on Wednesday, reversing five consecutive daily builds. Volume, instead, increased by nearly 16.1K contracts, clinching the second consecutive build.

GBP/USD now targets 1.2750, where it could fail

Cable is extending the weekly up move and is now looking to break above the 1.2700 handle and advance to monthly tops in the mid-1.2700s, where it could lose impulse. The sharp drop in open interest reinforces this view, while rising volume could add some upside momentum.