GBP futures: upside momentum missing

CME Group’s preliminary figures for GBP futures markets showed traders trimmed their open interest positions by just 675 contracts on Thursday from Wednesday’s final 203,324 contracts. In the same line, volume went down by almost 26K contracts, the first drop after three consecutive gains.

GBP/USD bearish below 1.4070

Cable’s positive performance on Thursday has been accompanied with a drop in volume and muted activity from open interest, which has somehow removed upside potential. Looking ahead, the prospects for GBP/USD keep pointing to the likeliness of extra downside as long as it remains below the short-term resistance line off 2018 tops, today in the 1.4070 region. This area is reinforced by last week’s tops.