• GBP/USD declined on Wednesday as sterling was weighted by the initial round of posturing by Britain and the European Union over Brexit negotiations, largely brushing off positive UK construction data.
   
• In the month since Prime Minister Theresa May submitted formal divorce papers, Brexit has been overshadowed by a public display of brinkmanship as Britain and the rest of the European Union set out their stalls for the tortuous exit negotiations.
   
• A stronger U.S. dollar also added losses for the Sterling as the dollar firmed before a U.S. central bank statement that may signal a rate hike next month.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.3000 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2973, a break above this level would expose the cable to next resistance level at 1.3000 levels.
   
• To the downside strong support can be seen at 1.2900, a break below at this level will open the door towards next level at 1.2856.
  
  Resistance Levels
  
  R1:  1.2973 (50% Retracement level)
  
  R2: 1.3000 (Psychological levels)
  
  R3: 1.3043 (61.8% Retracement level)
  
  Support Levels
  
  S1: 1.2900 (38.2 % Retracement level)                   
  
  S2: 1.2856 (May 2nd lows)
  
  S3: 1.2815 (23.6 % Retracement level)