• The Sterling remained in strong bullish tone against dollar on Thursday as buying interest continued as dollar was weighed down after U.S. inflation and unemployment data failed to reverse a downtrend that followed some of the biggest gains on record for China's yuan.
   
• Investors shook off promising data on the U.S. economy, including the Institute for Supply Management's non-manufacturing purchasing managers index, which showed new orders and prices paid at their highest levels since August 2015 and August 2014, respectively.
   
• U.S. jobless claims fell to a 43-year low last week, but that data was countered by a soft report from payrolls processor ADP showing employment gains were muted in December.
   
• The pair remains under bulls control unless until it trades above 1.2244 support level, therefore it is good to buy this pair on dips.
   
• To the upside, the strong resistance can be seen at 1.2518, a break above this level would expose to cable to next resistance level at 1.2600.
   
• To the downside immediate support can be seen at 1.2350, a break below will open the door towards next level at 1.2245.
  
  Resistance Levels
  
  R1: 1.2434 (50% Retracement Level)
  
  R2: 1.2518 (61.8% Retracement Level)
  
  R3: 1.2600 (Psychological levels)
  
  Support Levels
  
  S1: 1.2350 (38.2% Retracement Levels)
  
  S2: 1.2245 (23.6% Retracement Levels)
  
  S3: 1.2196 (Jan 3rd lows)