The Pound is trading bearish against the US dollar after sliding below the key 1.30 level to a three-week low over rising concerns about the British government’s hard deadline for the end of the transition period. At the time of writing, GBP/USD is trading around 1.294.

Last Friday, PM Boris Johnson passed the Brexit Bill through the parliament successfully ensuring that Britain finally exits the European Union on January 31, 2020. However, he has also enforced that trade negotiations with the EU must conclude by the end of the present deadline for the transition period December 31, 2020.

This has markets worried about the possibility of a no-deal Brexit in case this short a timeline proves inadequate for Britain and the EU to successfully negotiate a free trade agreement. Meanwhile, GBP/USD has also turned bearish over the recent strengthening in the US dollar over rising optimism of the US-China phase one deal and positive economic data releases from the US.