GBP Futures: scope for extra pullbacks

Open interest in GBP futures markets from CME Group posted the largest increase so far this year on Tuesday, according to flash data from CME Group. In the same direction, volume rose for the first time after three drops in a row, this time by around 55.5K contracts, the largest advance since June 12.

GBP/USD risks a test of YTD lows near 1.2370

Cable prolonged its move south in the first half of the week supported by rising open interest and volume, and is now exposing a visit to 2019 lows in the 1.2370 zone recorded in early January.