GBP Futures: Upside loses steam

Investors trimmed their open interest positions for the second consecutive session on Thursday, this time by around 4.1K contracts according to advanced readings from CME Group. In the same line, volume went down by around 6.8K contracts, resuming the downside following Tuesday’s build.

GBP/USD met resistance near 1.2300

Cable’s sharp recovery appears to have met resistance in the 1.2300 neighbourhood for the time being, area coincident with a Fibo retracement of the March pullback. However, the positive price action was on the back of shrinking open interest and volume, noting the presence of short covering and thus exposing some lack of sustainability of the move.