• GBP/USD declined sharply on Tuesday as sterling was weighted down on worries about the political and economic risks from Britain's pending exit from the European Union rates this year.
   
• The pair made modest gain in the afternoon US session hitting as high as 1.2988 but was unable to move higher on broader weakness.
   
• Currently, the pair is trading around 1.2978 levels, it is set to decline further towards 1.2900 and later 1.2850 in the short term.
   
• To the upside, the strong resistance can be seen at 1.3091, a break above this level would expose the cable to next resistance level at 1.3160 levels.
   
• To the downside, strong support can be seen at 1.2945, a break below at this level will open the door towards next level at 1.2873.
  
  Resistance Levels
  
  R1:  1.3016 (61.8% Retracement level)
  
  R2: 1.3091 (Sep 19th high)
  
  R3: 1.3160 (Aug 31st high)
  
  Support Levels
  
  S1: 1.2945 (50% Retracement level)                        
  
  S2: 1.2873 (38.2 % Retracement level)
  
  S3: 1.2800 (Psychological levels)