•GBP/USD strengthened on Monday after UK PMI data showed continued growth in private sector output
• The preliminary S&P Global Flash Composite Purchasing Managers' Index remained at 50.5 in December, staying just above the 50.0 mark that separates growth from contraction.
• Looking ahead, investors are largely expecting the Bank of England to keep interest rates unchanged on Thursday, following the U.S. Federal Reserve's anticipated 25 basis point rate cut on Wednesday..
•At GMT 15:15, Sterling was last up 0.64% on the dollar at 1.2688, its highest since Dec 12th
• Immediate resistance is located at 1.2696 (Dec 3rd high), any close above will push the pair towards 1.2728(38.2%fib).
•Support is seen at 1.2597(23.6%fib) and break below could take the pair towards 1.2530(Lower BB).
Recommendation: Good to buy around 1.2680 with stop loss of 1.2600 and target price of 1.2770
