GBP futures: upside expected to continue

CME Group’s preliminary figures for GBP futures markets showed open interest increased by more than 6.8K contracts on Wednesday vs. Tuesday’s 178,230 contracts. Volume, instead, dropped by more than 23.4K contracts, partially offsetting yesterday large build.

GBP/USD now targets 1.3660

The rally in Cable remains everything but abated so far today. The recent up tick has been in tandem with an increase in open interest, allowing for extra gains in the near term. However, the moderate decrease in volume prompts some caution over the continuation of the rally.