GBP futures: cautious ahead of BoE

In light of preliminary figures for GBP futures markets from CME Group, open interest dropped marginally by 97 contracts on Wednesday from 217,430 contracts traded on Tuesday. Volume, instead, decreased significantly by nearly 21K contracts.

GBP/USD upside lost momentum around 1.3250

Cable’s saw a test of fresh cycle highs at 1.3250 on Tuesday just to close around 1.3230 for the day. Shrinking volume coupled with some decelerating momentum in open interest implies the likeliness that some caution is probably emerging among traders in light of the imminent BoE meeting. A resumption of the bullish bias should see the next target around post-Brexit tops in the 1.3440 region.