GBP futures: potential turn on the cards?

In light of CME Group’s preliminary data for GBP futures markets, traders once again scaled back their open interest positions by more than 4.4K contracts on Tuesday from Monday’s 199,923 contracts. In the same line, volume contracted by nearly 14K contracts, recording the second decrease in a row.

GBP/USD deeper retracement unlikely

Cable is losing ground since last Friday, shedding more than 2 cents to today’s lows in sub-1.3400 levels. This, coupled with decreasing open interest and diminishing volume, is hinting at the possibility that a potential turn could be on the cards.

Risks to this view come as usual from Brexit headlines and political uncertainty in the UK. It is worth mentioning that another round of EU-UK Brexit talks has started on Monday.