• GBP/USD declined on Monday as recent batch of weak UK data has added to doubt on the Bank of England's surprise warnings that it is on the verge of raising borrowing costs.
   
• A strong U.S. payrolls report on Friday also added to losses for the pound after unexpected falls in already very slow UK construction, manufacturing and industrial output.
   
• The pair is set to reach 1.2800 and later towards 1.2780 in the short term as the US dollar is set to strengthen against the British pound 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 1.2955 levels.
   
• To the downside strong support can be seen at 1.2838, a break below at this level will open the door towards next level at 1.2792.
  
  Resistance Levels
  
  R1:  1.2895 (50 % Retracement level)
  
  R2: 1.2955 (61.8 % Retracement level)
  
  R3: 1.3000 (Psychological levels)
  
  Support Levels
  
  S1: 1.2838 (38.2 % Retracement level)                   
  
  S2: 1.2792 (June 28th lows)
  
  S3: 1.2768 (23.6 % Retracement level)