GBP/USD – 1.39 ON THE CARDS?
- GBP/USD chewed through a key resistance zone on Friday.
- CME data show max additions in 1.39 strike call option.
- Technicals favor further upside.
Having defended 1.35 levels since the beginning of the year, the GBP/USDchewed through strong resistance in the 1.3659-1.3710 area on Friday and closed above 1.37 for the first time since June 2016.
The strong move upwards seems to have revived interest in the GBP/USDcalls. The CME data for GBP/USD February expiry options shows the open interest/open positions in call options rose by 1526 contracts on Friday. Meanwhile, the open interest in put options increased by a mere 408 contracts.
What’s more interesting is that open interest at 1.39 strike call went up by 754 contracts. Also, additions were seen in 1.3950 call, 1.40 call and 1.4050 call. The numbers indicate the investors could be betting on a further upside in the pair, possibly towards 1.39 levels.