GBP / USD is trading at daily lows in the price area of 1.3470. Cable has turned bearish in the short term and is poised to extend its crisis, according to FXStreet chief analyst Valeria Bednarik.
“The UK and the EU reached a post-Brexit deal on Christmas Eve, which includes details on trade, law enforcement and dispute settlement, among others. The British Parliament will ratify the deal on December 30, according to Prime Minister Boris Johnson. The UK celebrates Boxing Day on Monday, which means local markets remain closed. “
“The short-term technical picture suggests that the decline could continue over the next few hours. In the 4-hour chart, GBP / USD is breaking through its 20 SMA, which has lost its bullish momentum, albeit still above the longer ones. Technical indicators have fallen sharply, with the RSI already sitting at negative levels. Further declines look likely on a break below 1.3470, the immediate support level. “