The pound sterling remains biased to the downside as the bearish momentum is strong. Economic data from the UK remains sparse ahead of the BoE meeting later in the week.
The currency pair lost over 0.50% intraday basis. Following the January 31st deadline, the UK and the EU will enter an 11-month transition period to chalk out the finer details.
GBP/USD Could Retest the Support at 1.2960
The current bearish momentum in GBPUSD indicates that the currency pair could slip to the support area of 1.2960. If we see a rebound in prices, then the GBPUSD could likely be forming a head and shoulders pattern.
This could turn out to be quite bearish for the pound sterling. For now, the retracement off 1.2960 support will be important.
