GBP Futures: further decline appears likely

Investors added more than 1.2K contracts to their open interest positions on Tuesday, reversing at the same time four consecutive pullbacks, all according to flash data from CME Group. Volume followed suit and rose by almost 800 contracts.

GBP/USD focused on a breach of 1.2000

Cable’s daily retracement on Tuesday has opened the door to a deeper pullback amidst increasing open interest and volume. The possibility of the break below 1.2000 is now palpable as well as a potential visit to 2017 lows near 1.1980.