GBP Futures: scope for extra losses

Open interest in GBP futures markets increased by just 459 contracts on Thursday, recording the second build in a row according to advanced data from CME Group. In the same line, volume reversed the previous drop and gained nearly 7.7K contracts.

GBP/USD could now test the 200-day SMA near 1.27

Cable’s negative price action on Thursday (bearish ‘outside day’) was amidst rising open interest and volume, noting that fresh sellers are joining the broader down move and opening the door at the same time to extra decline to, potentially, the 200-day SMA just above 1.2700.