GBP futures: rallies appear limited

Open interest in GBP futures markets dropped by around 5K contracts on Thursday from Wednesday’s final 218,410 contracts, according to preliminary data from CME Group. In the same line, volume shrunk by almost 4.6K contracts after two consecutive builds.

GBP/USD sell the strength?

Cable is up for another session today, regaining the 1.2600 handle and above after dropping to the 1.2440/35 band. However, shrinking open interest and volume coupled with rising prices could remove some vigour of the up move and encourage sellers to return to the markets.