• GBP/USD initially gained but then lost some ground as investors awaited economic data for insights into global growth and monetary policy.
• Investors will also be closely watching Wednesday's ADP employment report and Friday's payrolls data.
• U.S. rate-setter Christopher Waller said on Monday that, with inflation expected to fall to 2%, he is currently inclined to support another interest rate cut later this month.
• Markets are now pricing in a 70% chance of a 25 basis point rate cut at the Fed's meeting on December 18, up from around 50% just over a week ago.
• Immediate resistance is located at 1.2703( 20SMA), any close above will push the pair towards 1.2740(50%fib)
• Strong support is seen at 1.2634(38.2%fib) and break below could take the pair towards 1.2505(23.6%fib).
Recommendation: Be on sidelines
