• GBP/USD rallied on Wednesday after prepared remarks from Federal Reserve Chair Janet Yellen dampened growing expectations of more than one interest rate hikes for the rest of the year.
   
• In testimony to be delivered to Congress later on Wednesday morning, Yellen said the Fed would not need to raise rates "all that much further" to reach current low estimates of the neutral fed funds rate.
   
• Sterling jumped to the day's high of $1.2910 as the dollar weakened broadly, up from $1.2870 level.
   
• However, further upside in this pair is expected to be limited as the pair finds strong resistance at 1.2954 which should limit further upside and bring decline towards lower levels in the short term.
   
• To the upside, immediate resistance can be seen at 1.2895, a break above this level would expose the cable to next resistance level at 1.2954 levels.
   
• To the downside strong support can be seen at 1.2840, a break below at this level will open the door towards next level at 1.2810.
  
  Resistance Levels
  
  R1:  1.2895 (50 % Retracement level)
  
  R2: 1.2954 (61.8 % Retracement level)
  
  R3: 1.3000 (Psychological levels)
  
  Support Levels
  
  S1: 1.2840 (38.2 % Retracement level)                   
  
  S2: 1.2810 (Daily lows)
  
  S3: 1.2768 (23.6 % Retracement level)