GBP Futures: scope for a deeper retracement

Investors added around 2.6K contracts to their open interest positions on Thursday, clinching the second consecutive build according to flash data from CME Group. In the same line, volume partially reversed the previous drop and went up by around 1.2K contracts.

GBP/USD could slip back to 1.2558

Cable has been grinding lower since weekly tops in the 1.2780 region. Yesterday’s negative price actions was in tandem with rising open interest and volume, opening the door for extra weakness in the short-term horizon. That said, the next target on the downside emerges at May lows in the 1.2560 area.