GBP futures: upside could take a breather near term

CME Group’s flash data for GBP futures markets noted open interest shrunk by almost 3.5K contracts on Tuesday after eight consecutive daily builds. Volume, instead, increased by nearly 75K contracts, extending the choppy performance.

GBP/USD supported by the 200-day SMA near 1.2960

Cable has retaken the key 1.3000 handle and moved further up, opening the door for a potential visit to the 21-day SMA at 1.3088 against the backdrop of erratic activity in volume and some reversion in prevailing uptrend in open interest. The critical 200-day SMA at 1.2960 should now hold the downside.