GBP Futures: rising odds for extra rangebound

In light of flash data for GBP futures markets from CME Group, open interest reversed the previous build and dropped by 5.2K contracts on Wednesday. Volume followed suit, down by around 11.3K contracts, the second drop in a row.

GBP/USD consolidative below 1.2200

Cable continues to trade within a sideline fashion, always below the 1.2200 handle and under scrutiny over persistent Brexit uncertainty. That said, further consolidation remains well on the cards for the time being. Of note, however, is the important build in open interest since late July against the backdrop of flat price action. This performance carries the potential to exacerbate the eventual breakout, whichever direction it takes.