GBP Futures: downside in the offing?

Investors trimmed their open interest positions by nearly 2K contracts at the beginning of the week following two consecutive builds, according to flash data from CME Group. Volume followed suit and shrunk by around 31.5K contracts, reversing two builds in a row.

GBP/USD still targets 1.30

Cable’s uptick on Monday was mainly on the back of USD-weakness while shrinking open interest and volume note the presence of short covering behind the move. Against this backdrop, a potential correction lower has now emerged on the horizon although a move and test of the 1.30 neighbourhood should not be ruled out just yet.