GBP Futures: Extra gains appear unlikely

Open interest in GBP futures markets went down by nearly 1.6K contracts on Wednesday, clinching the third drop in a row according to preliminary prints from CME Group. Volume, too, dropped by the second consecutive session, this time by almost 13.1K contracts.

GBP/USD stays capped by the 55-day SMA around 1.30

The upside momentum in Cable has been fuelled by short covering in past sessions, as signalled by declining open interest and volume amidst higher prices. That said, the resumption of the downtrend should not be surprising in the short-term horizon and while the 55-day SMA, today just above 1.30 the figure, continues to cap the upside.