GBP Futures: upside unsustainable?

Open interest in GBP futures markets shrunk for yet another session in Thursday, this time by around 3.8K contracts according to flash data from CME Group. In addition, volume reversed five consecutive daily drops and increased by nearly 19.6K contracts.

GBP/USD boosted by short covering

The sharp recovery in Cable looks sustained by ‘short-covering’ in light of positive price action and diminishing open interest. That said, further upside, while not ruled out in the near tern, should start to lose momentum in the next sessions.