GBP Futures: Upside looks limited

Open interest in GBP futures markets went down by just 723 contracts at the end of last week, reversing six consecutive build according to advanced readings from CME Group. In the same line, volume shrunk by around 64.3K contracts, resuming the downside following the previous build.

GBP/USD stays capped by 1.3100

Cable’s price action as of late and activity in open interest and volume suggest the recent upside was fuelled by short covering, leaving the upside somewhat limited in the short-term horizon. That said, the 55-day SMA in the 1.3060 region emerges as the initial hurdle ahead of the 1.31 neighbourhood, where GBP/USD is expected to meet stronger resistance.