GBP Futures: potential rebound on the cards

CME Group’s preliminary data for GBP futures markets noted open interest shrunk by just 86 contracts on Thursday after three consecutive daily builds. In the same line, volume went down by almost 25K contracts following two builds in a row.

GBP/USD supported around 1.2300

Cable’s leg lower appears to have met a decent support in the 1.23 neighbouhood so far this week. Declining open interest and volume coupled with negative price action carries the potential to spark a near term rebound to, initially, recent tops in the 1.2500 area.