FXStreet notes that bullish bets on the sterling were trimmed to the lowest level so far this year. Strategists at Rabobank are keeping an eye on the December low at 1.2905.

“The market seems to be bracing for tough trade negotiations between the UK and the EU in the coming months.”

“The short-term technical bias has shifted to the downside after GBP/USD fell below the support area around 1.2950-1.30. The December low at 1.2905 is the key level to watch on the downside.”