GBP/USD to extend the decline below 1.3470

The GBP/USD pair is trading at the daily lows in the 1.3470 price zone. The cable has turned bearish in the near-term and is poised to extend its slump, according to FXStreet’s Chief Analyst Valeria Bednarik.

Key quotes

“The UK and the EU reached a post-Brexit deal on Christmas Eve, which includes details on trade, law enforcement, and dispute settlement, among other things. The UK Parliament will ratify the accord on December 30, according to Prime Minister Boris Johnson. The UK celebrates Boxing Day this Monday, which means local markets remain closed.”

“The near-term technical picture suggests that the decline may extend during the upcoming hours. In the 4-hour chart, the GBP/USD pair is piercing its 20 SMA, which lost its bullish momentum, although still above the longer ones. Technical indicators have turned sharply lower, with the RSI already within negative levels. Further declines seem likely on a break below 1.3470, the immediate support level.”