GBP Futures: recovery looks fragile

Open interest in GBP futures markets shrunk for the second straight session on Monday, this time by around 5.7K contracts according to preliminary figures from CME Group. In the same line, volume went down for another session, now by nearly 5.5K contracts.

GBP/USD stays well capped by 1.30

Cable’s advance on Monday was on the back of declining open interest and volume, signaling that short covering was behind the move. That said, spot could move into a rangebound phase in the next sessions while waiting for some relevant headlines from the Brexit negotiations.