GBP futures: top in place above 1.3200?

In light of advanced figures for GBP futures provided by CME Group, open interest dropped marginally by 158 contracts on Thursday vs. Wednesday’s 217,100 contracts. Volume, instead, rose by more than 58K contracts and are both running below the monthly average.

GBP/USD extra gains above 1.3250 appears unlikely

Cable recorded a reversal day on Thursday in response to the wave of selling pressure triggered by the dovish tone from the Bank of England at its MPC meeting. Open interest seems to be flattening in past sessions, while volume rose noticeable. This, in light of yesterday’s sharp pullback and the inability of the pair to advance further north of 1.3250 allows us to think that a potential interim top could be in place.

Adding to this view, it is important to note that the recent GBP/USD rally has been solely sustained by USD-weakness, while headline from the domestic front appears ‘just’ alleviated for the time being.