GBP futures: bullish with caution

In light of CME Group’s advanced data for GBP futures markets, investors added nearly 6.3K contracts on Wednesday from Tuesday’s final 191,938 contracts. Volume, instead, dropped after four consecutive builds by more than 99.2K contracts.

GBP/USD now targets 1.3400

Cable’s sharp rebound on Wednesday was amidst the continuation of the uptrend in open interest while volume decreased significantly. That said, a probable test of the 1.3400 handle remains on the cards although the strong draw in volume warns against this scenario.