GBP Futures: further upside on the cards

Open interest in GBP futures reversed four consecutive daily drops and rose by around 5K contracts on Tuesday according to preliminary figures from CME Group. Volume, in the same direction, went up by more than 142K contracts, recording the largest daily build so far this year.

GBP/USD could attempt a move to 1.2300

Cable rebounded from multi-year lows on Tuesday on the back of rising open interest and volume. That said, and with Brexit headlines supporting the upside momentum, another visit to recent tops in the 1.2300 neighbourhood should not be ruled out in the near term.