GBP futures: bearish scenario still prevails

Investors increased their open interest positions in GBP futures markets by more than 2K contracts on Thursday vs. Wednesday’s final 183,446 contracts, according to CME Group. On the other hand, volume decreased by the second consecutive day, this time by around 11.4K contracts.

GBP/USD still targets 1.30

Cable’s weekly decline has been in tandem with somewhat rising open interest, which lends extra support to the bearish context and adds to the perspective of a potential test of the psychological handle at 1.30 the figure.

Of note, however, is the diminishing trend in volume, which removes some tailwinds from the probable continuation of the leg lower.

As usual, GBP should stay under the microscope regarding headlines from the UK-EU talks as well as the uncertainty surrounding the UK’s political arena.