GBP futures: recovery looks tepid

In light of CME Group’s preliminary data for GBP futures markets, investors trimmed their open interest positions by around 2.2K contracts on Tuesday vs. Monday’s final 193,878 contracts. On the other hand, volume rose by almost 6.6K contracts.

GBP/USD could test 1.3289/1.3300

Cable’s rebound from recent lows in the mid-1.2900s was on the back of shrinking open interest and volume. A test of the 55-day sma at 1.3289 appears on the cards ahead of the critical 1.3300 handle, although a more sustainable up move would require a strong catalyst or a sharp shift in sentiment.