GBP Futures: further pullbacks look limited

CME Group’s preliminary figures for GBP futures markets noted open interest dropped by nearly 4K contracts on Wednesday, clinching the second drop in a row. In addition, volume went down by around 14.2K contracts.

GBP/USD looks supported around 1.2840

Cable continues to grind lower in the second half of the week. The leg  lower, however, was in tandem with shrinking open interest and volume, which hint at the likeliness that extra downside could run out of steam. So far, the 1.2840 region has held the downside. In this area coincide a Fibo retracement of the May-September drop and the 21-day SMA.