GBP futures: liquidation poised to continue

In light of preliminary data for GBP futures markets from CME Group, open interest rose marginally by almost 600 contracts on Tuesday vs. Friday’s188,230 contracts. In the same line, volume reverted two consecutive declines and rose by nearly 48.2k contracts.

GBP/USD room for a visit to 1.3765

Cable’s recent downside has been against the backdrop of a gradual albeit persistent decline in open interest positions, indicative that liquidation of long positions is sustaining the down move, a clear bearish sign that allow for a probable visit to February’s low at 1.3765. Activity in volume, instead, remains choppy and leaves the scenario unclear for the time being.