GBP Futures: Scope for further downside

Open interest in GBP futures markets rose by nearly 15.5K contracts on Wednesday according to flash data from CME Group. In the same line, volume advanced by around 11.9K contracts.

GBP/USD could slip back to 1.2880, the 100-day SMA

Cable’s daily pullback on Wednesday was amidst rising open interest and volume, giving sellers the upper hand for the time being. That said, a deeper retracement to, initially, the 100-day SMA at 1.2880, should not be ruled out just yet.