GBP futures: door open for further decline

Preliminary figures for GBP futures markets provided by CME Group showed open interest increased by nearly 1.1K contracts on Monday vs. Friday’s final print at 207,203 contracts. Volume dropped by more than 35K contracts. Furthermore, both volume and open interest keep running below the monthly average for the time being.

GBP/USD bearish picture unchanged

Choppy volume amidst declining prices in Cable and flattening open interest points to a continuation of the bearish sentiment around spot and thus allow for extra pullbacks.

UK data releases ahead in the week, USD-dynamics and domestic headlines regarding Brexit stay the main headwinds facing GBP/USD in the near to medium term.