GBP futures: (still) buy the dips

In light of CME Group’s advanced data for GBP futures on Friday, open interest rose by more than 2.7K contracts from Thursday’s final reading at 205,955 contracts. Furthermore, volume decreased significantly by over 34K contracts.

Cable still points higher

The ongoing correction lower in GBP/USD should find buying interest in shallow levels, as rising open interest coupled with higher prices is a clear sign of the continuation of the bull run. Risks to this view are always coming from the UK’s political uncertainty and negotiations around Brexit, although the BoE’s meeting later in the week could add volatility around GBP.