GBP futures: cautiously optimistic

Preliminary data for GBP futures markets from CME Group noted open interest decreased by just 705 contracts on Wednesday vs. Tuesday’s final 206,151 contracts, recording the first drop after five consecutive gains. In the same line, volume extended the positive streak for the sixth day, this time by almost 49.2K contracts.

GBP/USD: 1.4070 likely to cap the topside

Cable’s upside appears to have encountered strong hurdle in the 1.4000 neighbourhood for the time being, following two consecutive days of ‘indecision’ candles in the upper end of the recent range. The upside has been sustained by another gain in volume, while open interest dropped by 705 contracts, all leaving the door open for a potential extension of the current leg higher. However, the 1.4070 area is expected to be a significant hurdle.