GBP futures: further weakness unlikely

CME Group’s flash data for Thursday in GBP futures markets showed open interest kept rising on Thursday, this time by more than 5.8K contracts vs. Wednesday’s 218,485 contracts. Volume, instead, dropped by almost 6.7K contracts.

GBP/USD looking to carve a base?

Cable’s doji-like candle on Thursday (a sign of indecision among traders) coupled with rising open interest and dwindling volume support the view that spot might have found a base around the 1.2780/70 band, at least in the near term horizon.

However, GBP remains fragile mainly from the Brexit front, while the steady-to-dovish stance from the BoE and uncertainty around UK politics are also reinforcing this view.