GBP futures: door open for a squeeze higher

Open interest in GBP futures markets dropped by around 5.3K contracts on Tuesday vs. Monday’s final 215,913 contracts, according to advanced figures from CME Group. Volume followed suit, down by more than 7.8K contracts, recording the second consecutive drop.

GBP/USD initial hurdle lines up at 1.3112

Cable retreated to multi-week lows in the 1.2940 region on Tuesday amidst shrinking volume and open interest. That said, the subsequent rebound carries the potential to extend further in the near term, with initial target at Friday’s tops at 1.3112.