GBP futures: gains appear limited

Open interest in GBP futures markets dropped by more than 4.5K contracts on Thursday vs. Wednesday 214,637 contracts, as per advanced figures provided by CME Group. Volume, instead, increased sharply by 121.3K contracts.

GBP/USD: rallies face resistance around 1.4050/65

Cable met increased buying interest following the unexpected hawkish stance by the Bank of England at yesterday’s meeting. However, investors failed to push further north of the 1.4070 region, retreating and close the day more than a cent lower from those peaks albeit well into the positive territory.

Rising volume coupled with Thursday’s candle allow for some gains in the near term, although rallies should face a strong hurdle at yesterday’s top at 1.4065, while the 10-day sma at 1.4051 reinforces the resistance area.