GBP futures: downside appears limited

CME Group’s flash data for GBP futures markets noted investors added just 106 contracts yesterday from the previous session. On the other hand, volume extended the choppy activity and shrunk by almost 4K contracts.

GBP/USD looks supported around 1.2900

Cable dropped and briefly tested lows in sub-1.2900 levels on Wednesday amidst a generalized bid tone around the greenback. The persistent uptrend in open interest (albeit rising by irrelevant amounts in many occasions) allows for the continuation of the move, although the erratic performance in volume could remove tailwinds from further pullbacks.