GBP futures: rebound likely near term

Open interest in GBP futures markets rose by more than 4.4K contracts on Friday vs. Thursday’s 184,141 contracts, according to preliminary figures from CME Group. In the same line, volume ticked higher by almost 1.7K contracts, reverting the previous significant decline.

GBP/USD finds support near 1.3070

Cable’s Friday candle failed to close near session lows, finding quite decent support in the 1.3070 area (Friday’s lows and 100-day sma) amidst rising open interest and a small up tick in volume.

Despite declining prices coupled with rising open interest and volume is a bearish signal, Friday’s close and a small uptick in volume hints at the idea that the 1.3070 area should contain occasional dips in the near term, while the upside stays limited in the 1.3280 region for the time being.