CME Group’s flash data for GBP futures markets noted open interest extended the up trend for yet another session, rising by almost 4.9K contracts, while volume remained choppy and increased by nearly 20k contracts, partially reversing the previous drop.

GBP/USD approaching 1.2400… and below

Rising uncertainty in the UK government an Brexit, plus speculations of a rate cut by the BoE are far too much for the Sterling and carries the potential to drag Cable to the 1.2400 neighbourhood, Rising open interest adds sustainability to this view although erratic activity in volume could also spark some consolidation ahead of further losses.