GBP futures: diminishing odds for further decline

In light of advanced data from CME Group for GBP futures, open interest dropped by more than 2K contracts on Monday vs. Friday’s 179,999 contracts. In the same direction, volume decreased by more than 50.6K contracts, recording the second consecutive drop at the same time.

GBP/USD appears capped near 1.3200

Cable’s recent uptick has been amidst diminishing open interest and volume, removing some tailwinds from the potential re-test of the key barrier at 1.3200 the figure.

As usual, Brexit concerns remain poised to drive the sentiment around the Sterling in the months to come, while the BoE is expected to keep the monetary status quo unchanged at least to mid-2018.