GBP futures: deeper retracement not ruled out

In light of flash data from CME Group for GBP futures markets, investors trimmed their open interest positions once again on Monday, this time by almost 3.6K contracts from Friday’s 180,261 contracts. In the same direction, volume decreased by nearly 18.3K contracts.

GBP/USD holding on to 1.3260

Cable’s downside has accelerated today, although it seems sellers find it difficult to push spot further south of the key 1.3260 area, where coincide August’s tops and the 23.6% Fibo retracement of the 2017 up move.

However, declining open interest in combination with lower prices, all against the backdrop of choppy activity in volume, keeps pointing to further liquidation of GBP-longs, all hinting at the likeliness that extra pullbacks are still a chance.