GBP futures: rally could be losing momentum

GBP futures markets from CME Group noted open interest dropped by nearly 2K contracts on Thursday from Wednesday’s final 216,613 contracts. Volume followed suit, shrinking by almost 16.2K contracts and clinching the second drop in a row.

GBP/USD capped by 1.3000 so far

Cable’s sharp move higher on Thursday was in tandem with declining open interest and volume, adding to the idea that a pause in the ongoing rally is expected (and logical). In this regard, the 1.3000 handle is seen as a strong nut to crack and bulls would surely need a strong catalyst to surpass this level.