GBP futures: bears remain in control

Open interest in GBP futures markets rose by almost 1.9K contracts on Wednesday vs. Tuesday’s final 221,303 contracts. Volume, instead, dropped by nearly 10.5K contracts, extending the choppy activity for the time being.

GBP/USD now looks to 1.2786

The selling bias around Cable remains well and sound for the time being. The drop in GBP/USD on Wednesday was accompanied by rising open interest and declining volume, allowing for further consolidation and a potential test of September’s low at 1.2786.