GBP Futures: bearish with caution

Open interest in GBP futures markets increased by yet another session on Friday, this time by around 4.2K contracts as per the latest CME Group report. On the other direction, volume dropped by around 26.6K contracts, prolonging the erratic activity.

GBP/USD upside limited around 1.2350

Cable’s recent up move stalled in the mid-1.2300s. The subsequent knee-jerk was accompanied by rising open interest, allowing for some extra weakness in the near term. However, the downtick in volume warns against a deeper retracement, leaving the scenario for some consolidation unchanged.