GBP/USD is continuing to pivot around the 1.3100 handle at the moment
In the near-term, sellers are in control as price keeps below both key hourly moving averages and looks towards a move back below the 1.3100 handle as well.
The return of focus to Brexit jitters - one which was much earlier than most would have anticipated - came after Boris Johnson said he would add a clause to his Brexit bill that will "legally prohibit" any extension to the transition period next year.
This means that we are faced either with the prospect of a miraculous trade deal in just under eleven months or the UK walks away at the end of next year without a deal.
That has kept the pound pressured as the election euphoria fades amid the quick switch to Brexit jitters. Looking at the bigger picture in cable:
The evening star pattern on the daily chart is an ominous sign for those looking to try and buy on dips. Technically, this could point towards added weakness in the pound and a move back towards 1.3000 for cable - which will be a serious test of buyers' resolve.
On the weekly chart:
This is perhaps where buyers may find a bit of comfort as price now descends towards a test of the key weekly moving averages under 1.3100. The 200-week MA (blue line) rests at 1.3091 while the 100-week MA (red line) rests at 1.3040.
Those will be potential levels for buyers to lean on alongside a key defense of the 1.3000 handle - if price action continues to drop towards that level.
Looking ahead, I reckon the pound still has the potential to move up on short squeeze potential but any upside will likely quickly run into offers - especially near key technical levels as seen over the past week (as long as Brexit jitters remain).
The BOE will be a key risk event tomorrow so be wary of that as well.
But given recent price action and sentiment, there's a distinct feeling that pound traders are going to adopt a approach of selling on rallies to kick off 2020 - a similar one to what has been the name of the game since 2018 up until the closing stages of 2019.
