GBP Futures: further downside not ruled out

CME Group’s flash data for GBP futures markets saw open interest rising by almost 1.2K contracts on Friday, reversing two consecutive drops. Volume, instead, shrunk by around 20.5K contracts following two builds in a row.

GBP/USD could slip back to 1.2980

Cable is struggling for direction in sub-1.3100 levels at the beginning of the week. However, the recent drop from the vicinity of 1.33 could extend further and test the 55-day SMA in the 1.2980 region favoured by rising open interest. By contrast, the moderate retreat in volume could slow the pace of the decline in the very near term.