GBP futures: rangebound likely near term

Open interest in GBP futures markets shrunk by just 895 contracts on Wednesday from the previous day, at the same time recording the fifth consecutive daily drop. In the same line, volume reverted Tuesday’s build and contracted by around 48.7K contracts.

GBP/USD well supported around 1.3100

Cable is prolonging the current sideline theme after bottoming out in the 1.3100 neighbourhood earlier in the week. Unclear price action amidst shrinking open interest and volume should leave the door open for the continuation of the consolidative mood in the near term at least, or until some Brexit headline hit the wires.