GBP futures: cautiousness expected to persist

Open interest in GBP futures markets shrunk for the fourth consecutive session on Tuesday, this time by more than 3.4K contracts according to advanced data from CME Group. On the other hand, volume increased by nearly 51K contracts for the first time after three drops in a row.

GBP/USD still faces resistance at 1.3000

Cable keeps the underlying upbeat tone unchanged despite uncertainty around the Brexit negotiations. Tuesday’s moderate advance was on the back of declining open interest and rising volume, leaving the door open for further consolidation although any upside should remain capped by the psychological 1.3000 mark for the time being.