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Open interest in GBP futures markets rose by nearly 1.1K contracts on Friday, reversing the previous drop, according to preliminary figures from CME Group. Volume, instead, shrunk for the second straight session, this time by around 4.6K contracts.

GBP/USD risks a deeper pullback below the 55-day SMA

Cable is now flirting with the 1.2280/1.2300 region, where coincide the 55-day SMA, August peaks and a Fibo retracement. Rising open interest amidst Friday’s negative price action suggests that further downside remains in the pipeline, although the drop in volume could also give room for some consolidation in the near term.