GBP Futures: Extra pullbacks likely

CME Group’s flash data for GBP futures markets showed investors added nearly 6.5K contracts to their open interest positions on Wednesday, clinching the third build in a row. Volume, too, went up, now by nearly 61.2K contracts, reversing the previous day’s drop.

GBP/USD now looks to 1.2700

Cable’s daily pullback on Wednesday was in tandem with increasing open interest and volume, leaving the scenario ripe for the continuation of the decline to, initially, the 200-day SMA in the 1.2700 neighbourhood.