GBP Futures: Further recovery stays in the pipeline

CME Group’s flash data for GBP futures markets noted investors added around 52.4K contracts to their open interest positions on Tuesday, reversing the previous drop. On the opposite direction, volume reversed five consecutive builds and retreated by nearly 27K contracts.

GBP/USD targets the 1.30 area

Cable’s uptick on Tuesday was in tandem with rising open interest, which should be supportive of the continuation of the move up in the near term. The down tick in volume, on the other hand, could remove some tailwinds from the expected recovery and trigger some rangebound trading in the near-term horizon.