GBP futures: probable squeeze lower?

In light of Tuesday’s advanced data from CME Group, open interest in GBP futures markets rose by more than 4.5K vs. Monday’s final prints at 212,869 contracts. Further data showed volume decreased by more than 7K contracts.

Cable could be in for correction

Tuesday’s test of fresh cycle highs near 1.3250 and the subsequent retracement to close the day at the minimum opened the door for a potential knee jerk in the near term. Increasing open interest coupled with lower prices in GBP/USD adds to this view, although dips should be shallow, as one could infer from the drop in volume.