As we can all see everyone in the UK was so excited about taking a direction on the 13th of December so price has been pumped up to 1.35 where reality (a.k.a Boris Johnson and his Brexit plan) kicked into our teeth and started a sell off the British pound.
By Christmas the sellers cooled down a little bit so the market could finally started a retracement. By the New Year it could re-test the Fib61.8 level then few days later the Fib50 without triggering another major push to the downside so I am expecting the price will re-test Fib38.2 to fully complete the retracement with a possible fakeout of the descending trendline, where I believe we should keep our eyes on if we are looking for a low risk short position targeting 1.28, the bottom of the October - November consolidation area.
Alternatively we can also watch out for another low risk entry point if the market breaks below the 1.30500 level and turns the support of the retracement into resistance.
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Alternative scenario looks more possible, watch out of the re-test @ 1.30500