GBP Futures: recovery looks exhausted

CME Group’s preliminary figures for GBP futures markets noted open interest shrunk by around 4.5K contracts on Tuesday, reaching the third drop in a row. In the same direction, volume went down by around 20.3K contracts, reversing two consecutive daily builds.

GBP/USD faces the next hurdle in the mid-1.2700s

Cable continues its march north so far this week, although declining open interest and volume warns against the extension of the ongoing recovery. That said, late May peaks in the 1.2750 region plus the 21-day SMA in the same area emerges as the next hurdle of significance, where some selling pressure could be waiting.