GBP futures: upside could be losing traction

Open interest in GBP futures markets dropped by just 38 contracts on Tuesday vs. Monday’s final 227,401 contracts, according to advanced data from CE Group. On the other hand, volume rose by 874 contracts.

GBP/USD room for a test of 1.3259

Cable’s rally remains well and sound so far today against the backdrop of diminishing open interest and volume, hinting at the likeliness that the upside could be running out of steam. Next target for GBP/USD could be October’s peak near 1.3260.