GBP futures: rangebound with caution

CME Group’s preliminary data for GBP futures markets showed open interest decreased by nearly 900 contracts on Monday from Friday’s final 300,909 contracts. In the same direction, volume dropped significantly by 75.5K contracts.

GBP/USD holding on below 1.3500

Cable remains in the lower bound of the recent range, following the rejection from last week’s fresh cycle tops beyond 1.3600 the figure. Lower open interest and diminishing volume couple with choppy price action denotes a clear lack of direction in price, allowing a potential extension of the consolidative theme.

As usual, Brexit headlines and political uncertainty in the UK remain poised to be the main drivers of the pair’s price action for the time being.