GBP futures: fade the strength?

In light of flash data for GBP futures markets from CME Group, open interest dropped by more than 1.7K contracts on Wednesday vs. Tuesday’s final 188,064 contracts. Volume followed suit, increasing significantly by more than 56.3K contracts (the largest increase since October 12) and recording the second consecutive build.

GBP/USD: rallies appear limited below 1.3300

Cable’s up move on Wednesday lost momentum in the vicinity of the 1.3280 area, coincident with today’s tops. The drop in volume warns against the presence of short covering fuelling the upside, although the important increase in volume could open the door for an extension of the upside.