GBP futures: points to some consolidation near term

Open interest in GBP futures markets decreased by almost 5K contracts on Wednesday vs. Tuesday’s final 221,098 contracts, the first drop following three consecutive builds. Volume followed suit and dropped by around 44.5K contracts, prolonging the choppy performance.

GBP/USD a solid break above 1.2900 seems unlikely

Cable’s up move yesterday was on the back of declining open interest and volume, removing tailwinds from a potential push higher. That said, a convincing breakout of the 1.2900 handle appears unlikely for the time being, while Brexit-driven volatility is far from abated.