GBP futures: downside seems limited

In light of CME Group’s preliminary figures for GBP futures markets, investors trimmed their open interest positions by around 3K contracts on Friday vs. Thursday’s final 220,862 contracts. On the opposite position, volume dropped by nearly 11.3K contracts.

GBP/USD supported around 1.3000

Cable’s downside on Friday was accompanied by a drop in open interest and an uptick in volume. Declining prices in GBP/USD coupled with diminishing open interest should remove downside pressure from the pair, while the volume appears to be rising at a slow place. Support should emerge at the psychological 1.3000 handle, which appears reinforced by the 55-day SMA at 1.2994.