GBP futures: rebound appears corrective

In light of advanced figures for GBP futures markets from CME Group, open interest decreased by nearly 2K contracts on Friday vs. Thursday’s final 202,386K contracts. In the same line, volume dropped for the second session in a row, this time by almost 27K contracts.

GBP/USD capped at 1.4050/70

Cable continues to push higher albeit at a gradual pace and is looking to advance further north of the 1.3800 handle after finding good support in the 1.3700 neighbourhood (March 1). However, the recent bull run seems to lack of sustainability as the move is amidst shrinking both open interest and volume. So far, spot is susceptible of further pullbacks as long as recent peaks at 1.4070 and the resistance line off 2018 tops, today around 1.4050, continue to cap.

As usual, Brexit headlines and the uncertainty around May’s government poise the biggest threat to any bullish attempt in the pair.