GBP Futures: room for extra upside

Open interest in GBP futures markets reversed four consecutive daily pullbacks on Wednesday and rose by more than 5K contracts according to preliminary readings from CME Group. On another direction, volume shrunk by nearly 71.2K contracts after two builds in a row.

GBP/USD still targets 1.30 and above

A moderate raise in open interest, allowing for the continuation of the recovery in the near term, accompanied Cable’s rebound on Wednesday. Against this view, the 1.30 neighbourhood and beyond stays as the immediate target for GBP/USD in case bulls maintain the initiative.