GBP futures: extra pullbacks on the cards

CME Group’s preliminary data for GBP futures markets showed investors added 724 contracts to their open interest positions on Tuesday vs. Monday’s final 226,976 contracts. In the same line, volume increased by around 32.6K contracts, partially reverting the previous significant drop.

GBP/USD focused on 1.2700

Cable continues to grind lower so far this week. Tuesday’s drop was in tandem with rising open interest and volume, allowing for some extra weakness ahead with the next target at October’s lows in sub-1.2700 levels.