GBP futures: rallies appear tepid

CME Group’s flash data for GBP futures markets noted open interest rose by more than 1.9K contracts on Monday vs. Friday’s 224,288 contracts. On the other hand, volume decreased for the fourth straight session, this time by nearly 17K contracts.

GBP/USD faces strong resistance at 1.3400

The ongoing squeeze higher in Cable has been on the back of declining volume and in general increasing open interest, allowing for the continuation of the corrective upside. However, shrinking volume should keep rallies limited for the time being.