GBP futures: bearish with caution

Open interest in GBP futures markets shrunk by more than 1.5K contracts on Monday vs. Friday’s final 193,921 contracts, recording the third consecutive drop according to advanced data from CME Group. Volume, instead, rose around 36.4K contracts, prolonging the choppy performance.

GBP/USD could attempt a rebound near term

Cable remains under pressure below the 1.2900 handle, although the downtrend in open interest coupled with inconclusive activity in volume warns against a deeper retracement. Cautiousness around GBP is expected to grow bigger in light of the upcoming UK parliamentary vote.