GBP futures: deeper pullback unlikely

Open interest in GBP futures markets from CME Group dropped by just 2 contracts on Wednesday, reaching the third drop in a row while volume shrunk by around 1.2K contracts.

GBP/USD could slip back and test the 200-day SMA

Cable has been losing ground in past sessions on the back of declining open interest and choppy performance in volume. Further retracements are expected to meet strong support in the 1.2960 region, where coincides the 200-day SMA.