GBP futures: extra gains appear unlikely

In light of flash data for GBP futures markets, open interest dropped by around 2.2K contracts on Wednesday from Tuesday’s final 267,219 contracts, according to CME Group. In the same line, volume shrunk by almost 30.2K contracts.

GBP/USD could now slip back to 1.2660

Cable is now losing some ground following yesterday’s doji-like candle and diminishing volume and open interest, which should remove tailwinds from the recent upside. A resumption of the downtrend should target recent YTD lows in the 1.2660 region.