GBP Futures: Further pullbacks likely

CME Group’s flash data for GBP futures markets showed investors added around 3.5K contracts to their open interest positions on Tuesday, reaching the seventh consecutive build at the same time. On the other hand, volume dropped for the third straight day, this time by around 32.8K contracts.

GBP/USD could break 1.2000 near-term

Cable met support in the 1.2000 neighbourhood on Tuesday, recording fresh YTD lows. the move down was accompanied by rising open interest while volume contracted for yet another session. That said, a potential breach of the 1.20 level does not look surprising, although the contraction in volume could slow the pace of the expected decline or even trigger some consolidation.