GBP futures: scope for further downside

In light of preliminary figures for GBP futures markets from CME Group, investors added almost 7K contracts to their open interest positions on Wednesday, reaching the eighth consecutive build. On the other hand, volume kept the choppy activity and dropped by around 43.2K contracts, reversing the previous large build.

GBP/USD now looks to 1.2480

Cable keeps grinding lower and another build in open interest clears the way for further retracements as well as for a potential visit to 2018 lows in the 1.2480/75 band recorded in last December.