GBP Futures: scope for extra gains

Investors added nearly 1.4K contracts to their open interest positions in GBP futures markets on Thursday, according to advanced figures from CME Group, reaching the third build in a row. Volume, too, increased by around 10.2K contracts, reversing the previous drop.

GBP/USD now looks to 1.2373

Increasing open interest and volume, showing that fresh buyers are flowing into the markets, reinforced Cable’s upside on Thursday. Against this, GBP/USD could extend the upside momentum to, initially, January’s ‘flash crash’ at 1.2373. As usual, Brexit headlines should be the almost exclusive driver behind the price action for the foreseeable future.