GBP futures: further decline not ruled out

CME Group’s preliminary data for GBP futures markets saw open interest rising by just 1103 contracts on Tuesday vs. Monday’s 193,955 contracts. In the same direction, volume rose by more than 13K contracts.

GBP/USD could slip back to 1.3536 (200-day sma)

Shrinking expectations of a rate hike by the BoE at the May meeting prompted Cable to fall more than 7 cents since post-Brexit tops in the 1.4380 region recorded earlier in April. The recent acceleration in the decline has been on the back of increasing open interest and somewhat choppy activity in volume. That said, deeper pullbacks are not ruled out and should face initial support at 1.3536, where sits the 200-day sma.