• GBP/USD slipped sharply lower on Monday as dollar was underpinned by strong U.S. jobs data.
• The data on Friday showed that U.S. job growth unexpectedly surged in December, while the unemployment rate dropped to 4.1%, marking a strong end to the year for the labor market.
• Markets are now pricing in just 27 basis points worth of Fed rate cuts this year, down from roughly 50 bps at the start of the year.
• At GMT 09:44, Sterling was last down 0.70% on the dollar at 1.2112.
• Immediate resistance is located at 1.2314 (38.2%fib), any close above will push the pair towards 1.2365(Jan 9th high).
• Support is seen at 1.2209(38.2%fib) and break below could take the pair towards 1.2314(50%fib).
Recommendation: Good to sell around 1.2120 with stop loss of 1.2240 and target price of 1.2000