GBP futures: rallies seen limited

Open interest in GBP futures markets shrunk by almost 5.6K contracts on Friday vs. Thursday’s final 214,437 contracts. In the same line, volume decreased by around 1.6K contracts, recording the second consecutive drop.

GBP/USD capped by 1.2780, 55-day SMA

Price action around Cable largely hinges on the ongoing Brexit negotiation. In the meantime, occasional bullish attempts should meet strong resistance at the so far yearly peaks near 1.2780, coincident with the 55-day SMA.