GBP Futures: room for some consolidation near term

CME Group’s flash data for GBP futures markets noted open interest shrunk for the fourth consecutive session on Wednesday, this time by just 438 contracts. In the same direction, volume went down by around 11K contracts, clinching the second consecutive drop.

GBP/USD faces strong hurdle around 1.2700

Cable failed to extend the breakout of the 1.2700 barrier yesterday amidst declining open interest and volume. While extra dips are not ruled out, a consolidation phase looks more likely in the short-term horizon.