GBP Futures: move lower on the cards near term

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CME Group’s advanced figures for GBP futures markets noted investors trimmed their open interest positions by around 4.1K contracts on Friday, reversing three builds in a row. In the same direction, volume clinched the second drop in a row, this time by around 139.5K contracts.

GBP/USD met strong hurdle around 1.25

Brexit hopes in combination with USD-weakness have sustained the strong rebound in Cable last week. The up move, however, met a tough resistance in the 1.2500 neighbourhood, coincident with the 100-day SMA. Shrinking open interest and volume could also spark a leg lower in the short-term horizon, with the next probable support at the 1.2300 area, where sits the 55-day SMA.

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