GBP futures: further downside unlikely

According to CME Group’s flash data for GBP futures markets, open interest dropped by around 2K contracts on Monday vs. Friday’s final 190,286 contracts. Volume followed suit, falling by almost 56K contracts, the largest drop since April 2.

GBP/USD odds for a test of 1.3458 diminished

Cable is attempting a sideline theme in the lower bound of the recent range near the critical 200-day sma in the 1.3540 region. Shrinking volume and open interest against the backdrop of declining prices hints at the loss of downside momentum, pouring some cold water over the probability of a visit to YTD lows at 1.3458.