GBP Futures: upside looks exhausted

Investors trimmed their open interest positions in GBP futures markets by just 557 contracts on Thursday, reversing two consecutive builds, according to preliminary data from CME Group. Volume followed suit and also shrunk by nearly 40.3K contracts following two increases in a row.

GBP/USD still capped by 1.30

Cable’s rally advanced to the proximity of the key 1.30 handle on Thursday after the Brexit deal. However, shrinking open interest and volume might spark some profit taking and a correction lower in light of the impressive up move in past sessions. That said, the next critical hurdle on the upside remains at 1.30 the figure.