GBP Futures: extra losses remain on the cards

Open interest in GBP futures markets rose for the third session in a row on Monday, now by around 2.7K contracts according to flash data from CME Group. Volume, instead, reversed three straight builds and shrunk significantly by around 121.1K contracts.

GBP/USD faces a probable drop to 1.23

Cable is extending the weekly correction lower today. Monday’s downtick was accompanied by rising open interest, which leaves the door open for extra decline in the near term. That said, the next target of relevance emerges at the 55-day SMA at 1.2296. The sharp rebound in volume, however, could prompt some near term consolidation ahead of further losses.