• GBP/USD declined sharply on Wednesday as sterling was weighted down after as a weaker-than-expected batch of economic data added to political nerves that have begun to weigh on the currency again after last year's Brexit vote.
   
• A regular survey of manufacturing purchasing managers on Wednesday showed the factory sector holding on to much of its post-Brexit vote momentum while growing more slowly in February than expected.
   
• The Markit/CIPS UK Manufacturing Purchasing Managers' Index (PMI) also showed a slight easing in inflation pressures, which had been rising at a record pace after the tumble in the value of the pound triggered by the decision to leave the European Union.
   
• The overall manufacturing PMI slipped to 54.6 from 55.7 in January, below the median forecast of 55.6.
   
• A stronger U.S. dollar also added losses for the Sterling as the dollar firmed after rate hike comments from  U.S. Federal Reserve officials.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2433 is set to limit further upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2349, a break above this level would expose the cable to next resistance level at 1.2433 levels.
   
• To the downside strong support can be seen at 1.2265, a break below at this level will open the door towards next level at 1.2212.
  
  Resistance Levels
  
  R1:  1.2349 (50% Retracement level)
  
  R2: 1.2433 (61.8 % Retracement level)
  
  R3: 1.2471 (Feb 28th high)
  
  Support Levels
  
  S1: 1.2265 (38.2 % Retracement level)                   
  
  S2: 1.2212 (Jan 1st lows)
  
  S3: 1.23159 (23.6 % Retracement level)