• GBP/USD declined on Wednesday as sterling was under steady pressure as the UK government heads into negotiations on its EU exit.
   
• A stronger U.S. dollar also added losses for the Sterling as the dollar firmed on upbeat economic data and increased expectation that Federal Reserve will raise interest rate next year.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2315 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2256, a break above this level would expose the cable to next resistance level at 1.2315 levels.
   
• To the downside strong support can be seen at 1.2195, a break below at this level will open the door towards next level at 1.2117.
  
  Resistance Levels
  
  R1:  1.2256 (50% Retracement level)
  
  R2: 1.2315 (61.8 % Retracement level)
  
  R3: 1.2380 (Dec 22nd high)
  
  Support Levels
  
  S1: 1.2195 (38.2 % Retracement level)                   
  
  S2: 1.2117 (23.6 % Retracement level)
  
  S3: 1.2065 (Oct 25th lows)