GBP futures: correction lower on the cards

In light of preliminary figures for GBP futures from CME Group, open interest decreased by more than 1.5K contracts on Monday vs. Friday’s final reading at 271,867 contracts, recording at the same time the third consecutive drop. Volume followed suit, decreasing significantly by more than 107K contracts, the second drop in a row.

GBP/USD could have carved a top around 1.3600

Cable’s recent price action has been accompanied by diminishing open interest as well as volume, hinting at the likeliness that further downside could be on the cards, while occasional bullish attempts could be as well considered as selling opportunities.