GBP/USD sellers have gained the upper hand in early NorAm, pushing the pound from early highs by 1.3211 near session lows at 1.3146 nL8N29722T.
The pound had been bid into year-end rising from sub-1.30 on Dec. 26 to 2019's close at 1.3268.
Traders appear to be looking past Jan.
31's expected Brexit and focusing on UK-EU trade negotiations, which have once again lifted no-deal fearssince the current transition period runs only until year-end 2020 nL1N2970C5.
Today's GBP/USD selling is likely the reversal of last-minute position squaring into 2019's year-end.
With IMM spec positioning now positive at +8,697 contracts, as of Dec. 24 2019, for the first time since late April, specs will be watching UK-EU negotiations closely as the prime factor in determining the pound's direction.
Any positive momentum should boost GBP, putting 1.3516, the post-UK election high, in focus.
However, global economic and trade headwinds remain.
Positive Brexit tones may help GBP/USD on a relative basis but subdued global growth and low UK rates will likely temper GBP/USD's rise.
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