GBP futures: neutral/bearish near term

CME Group’s preliminary data for GBP futures markets noted open interest shrunk by almost 4.5K contracts on Tuesday vs. Monday’s final 201,122 contracts. On the other direction, volume rose by 14.3K contracts for the first time after four consecutive drops.

GBP/USD now faces some consolidation

A drop in open interest and an uptick in volume accompanied Cable’s pullback on Tuesday. That said, a consolidative scenario is likely in the near term although the continuation of the leg lower decline is not ruled out for the time being.