GBP futures: consolidative near term

• Prices holding well amidst falling volume/open interest
• A test of 1.30 seems to have lost some traction near term

According to CME Group, advanced data for GBP futures markets showed investors scaled back their open interest positions once again on Monday, albeit this time by only above 400 contracts vs. Friday’s 184,266 contracts. In the same direction, volume dropped for the third time in the last four sessions, this time by nearly 34.1K contracts.

GBP/USD diminished odds for further pullbacks

Price action around Cable seems to have stabilized somewhat as of late, while liquidation of long positions appears to have diminished its pace. In addition, the drop in volume warns of a potential shift in sentiment.

Brexit negotiations, as usual, and the BoE message in a secondary role, should drive the sentiment around the Sterling in the next months.