GBP futures: extra consolidation looks likely

Open interest in GBP futures markets from CME Group shrunk for the second session in a row on Tuesday, this time by almost 1.5K contracts. Volume, instead, rose by around 34.2K contracts, partially reversing the previous drop.

GBP/USD still capped by 1.3200

Cable’s daily pullback yesterday was accompanied by an uptick in volume, although the continuation of the downtrend in open interest warns against a deeper retracement and keeps the focus on April tops near the 1.3200 handle.