GBP futures: poised for further retracement

Open interest in GBP futures markets rose by nearly 6.5K contracts on Tuesday vs. Monday’s final 227,152 contracts. Volume followed suit, rising by around 14.7K contracts and reverting two consecutive drops.

GBP/USD looks to 1.2660

The selling mood around the Sterling remains unabated so far. Tuesday’s increase in volume and open interest coupled with declining prices is a bearish sign that allows for the continuation of the down trend in GBP/USD towards the 1.2660 region, or yearly lows.