GBP futures: neutral so far, further decline not ruled out

In light of CME Group’s preliminary data for GBP futures markets, investors added more than 5K contracts to their open interest positions at the beginning of the week vs. Friday’s final 216,471 contracts. On the other hand, volume dropped for the second session in a row by around 5.7K contracts.

GBP/USD could test 1.2920/25

The broad scenario around Cable remains neutral so far amidst choppy activity in volume and an uptrend in open interest. While Brexit remains the exclusive driver for the British Pound, a deeper retracement to monthly lows in the 1.2920 region should not be ruled out in the near term.