GBP futures: upside appears capped

In light of Tuesday’s flash data in GBP futures markets provided by CME Group, open interest rose by more than 2K contracts vs. Monday’s 270,194 contracts. In another direction, volume dropped by near 23K contracts, recording the third consecutive pullback.

GBP/USD faces strong resistance at 1.3600

Cable’s recent up move has been justified by the hawkish shift in the BoE’s stance and the continuation of the selling pressure surrounding the greenback. However, diminishing volume and choppy activity in open interest as of late removed some tailwinds from extra upside, at least in the near term.

The area of fresh cycle highs just beyond 1.3600 the figure emerges as a considerable hurdle, and occasional bullish attempts are seen struggling around these levels.