GBP futures: rebound appears on the cards

Open interest in GBP futures markets dropped by just 420 contracts on Thursday. Volume followed suit, shrinking by nearly 11.4K contracts, reaching the second drop in a row according to advanced data from CME Group.

GBP/USD met support near 200-day SMA

Cable’s weekly decline met decent contention in the proximity of the critical 200-day SMA in the 1.2960 region. Declining prices amidst shrinking open interest and volume hints at the likeliness of a change of direction in the near term, with immediate target at the 55-day SMA, just below 1.3100.