GBP Futures: stays bullish, with caution

CME Group’s preliminary data for GBP futures markets noted investors scaled back their open interest positions by just 684 contracts on Friday, recording the sixth consecutive daily drop. In the same line, volume extended the choppy activity and shrunk by nearly 28.8K contracts.

GBP/USD remains focused on 1.30

Cable’s negative price action on Friday was on the back of shrinking open interest and volume after another failed attempt to regain the 1.30 neighbourhood. The proximity of the overbought area could spark some near term correction in combination with the view that the recent rally was on the back of USD-weakness and short covering. The 1.30 region, in the meantime, remains the key immediate target on the upside.