GBP futures: rally stays well and sound

In light of recent flash data for GBP futures markets from CME Group, open interest retreated more than 1K contracts on Tuesday vs. Monday’s final 179,431 contracts. On the other hand, volume rose significantly by more than 137K contracts, the largest increase since November 2.

GBP/USD still targets 1.3440

Cable is flirting with fresh tops above the 1.3400 handle, coincident with the key 2014-2017 down trend line and remains poised for a test of the critical 1.3440/45 band. The recent up move has been amidst declining open interest, although the sharp increase in volume reinforces the view of further gains, at least in the near term.