GBP futures: retracements expected to be shallow

CME Group’s advanced data for Wednesday showed open interest in GBP futures markets decreased by 885 contracts from Tuesday’s final 193,648 contracts. Declining open interest has been prevailing since July 5 amidst also falling prices after Cable hit recent tops above 1.3030 (June 30).

Buy the dips

Pretty much the same scenario as we’ve seen in EUR futures markets, where declining open interest in tandem with prices signaling some liquidation among traders amidst a bearish trend. However, prices are expected to resume the upside once liquidation has ended.