GBP futures: upside momentum could take a break

CME Group’s advanced figures for GBP futures markets noted investors trimmed their open interest positions for the fifth session in a row, this time by nearly 2.2K contracts. Volume followed suit, down by more than 34K contracts.

GBP/USD up move tested the 200-day SMA

The rally in Cable met a tough resistance in the 1.3100 area amidst shrinking volume and open interest, opening the door for a potential correction lower in the near term but always keeping a close eye to Brexit developments.