GBP futures: bearish bias intact

In light of advanced data for GBP futures markets from CME Group, investors added more than 6.4K contracts to their open interest positions on Wednesday vs. Tuesday’s final 196,613 contracts. Volume followed suit, up by more than 27.7K contracts, recording the third consecutive advance.

GBP/USD further pullbacks likely

Cable has accelerated the correction lower this week on the back of heightened concerns around Brexit and the continuation of the bid tone around the greenback. The decline has been against the backdrop of rising volume and open interest, adding relevance to the bearish stance and opening the door for a deeper pullback, which should target 1.3658 (high September 20 2017).