GBP Futures: scope for some consolidation

CME Group’s flash data for GBP futures markets noted investors added just 853 contracts to their open interest positions on Monday, extending the erratic performance. Volume, instead, shrunk by almost 92.6K contracts following two consecutive daily builds.

GBP/USD still eyes a test of 1.2400

It seems the leg lower in Cable met some contention just above the 1.2400 handle on Monday. The uptick in open interest opens the door for further downside, although the moderate drop in volume suggests either a lower pace of the decline or the likeliness of a near term rebound. That said, last week’s low in the 1.2400 neighbourhood remains the next relevant support.