GBP futures: further decline likely

CME Group’s preliminary figures for Tuesday showed open interest in GBP futures rose significantly by more than 13K to 271,553 contracts vs. Monday’s final figures.

Leg lower seen… lower

In view of traders’ positioning, the Sterling is poised to suffer further in the near term. In fact Cable is down for the third consecutive session so far today, breaking below the key support at 1.2600 the figure, or fresh 2-month lows, opening the door for a probable test of the critical 200-day sma in the mid-1.2500s in the next sessions.