GBP futures: up move seen running out of steam

Advanced figures for GBP futures markets showed investors added just 770 contracts on Monday vs. Friday’s final 314,579 contracts, according to CME Group. On the other hand, volume dropped by almost 66.6K contracts.

GBP/USD could test the 100-day SMA at 1.3170

Yesterday’s up move in Cable was accompanied by a small up tick in open interest, which could leave a potential test of the 1.3170 area unchanged. However, the considerable drop in volume and the proximity of the overbought territory could allow for some weakness in the near term.