GBP Futures: Correction lower still on the cards

CME Group’s advanced readings for GBP futures markets showed investors added around 1.2K contracts to their open interest positions on Wednesday, resuming the uptrend after Friday’s drop. In the same line, volume reversed the previous pullback and increased by around 52.2K contracts.

GBP/USD looks capped by 1.3060, the 55-day SMA

Cable’s inconclusive session on Tuesday was amidst rising open interest and volume and following another failed attempt to break above the 1.3060/65 band, where is located the 55-day SMA. That said, the continuation of the leg lower could extend to, initially, monthly lows in the 1.2870 region (February 10^th).