GBP futures: room for extra downside

CME Group’s advanced data for GBP futures markets showed open interest dropped for the second day in a row, this time by nearly 2.1K contracts on Thursday from Wednesday’s final 201,570 contracts. On the other hand, volume rose by the fourth consecutive session by more than 23K contracts.

GBP/USD focused now on 1.3965

Cable’s strong rejection from fresh YTD peaks near 1.4380 continues to develop against a persistent build in volume despite open interest has dropped somewhat in the last couple of days. That said, the ongoing leg lower faces initial target around monthly lows near 1.3960.