GBP Futures: scope for further gains

Open interest in GBP futures markets shrunk by just 237 contracts on Friday, reversing a positive streak prevailing since May 13, according to flash data from CME Group On the other hand, volume extended the choppy activity and increased by around 48.1K contracts.

GBP/USD bounces off lows near 1.2560

Rising uncertainty around Brexit and the future of the UK government has been weighing on Cable in past weeks, all sustained by an up trend in open interest and erratic performance in volume. That said, the recovery from last week’s lows near 1.2560 could extend a bit further, but the underlying bearish note appears unchanged for the time being.