• GBP/USD strengthened on Tuesday as stronger-than-expected wage growth in the UK led investors to scale back their expectations for future interest rate cuts by the Bank of England next year.
• British wages rose more than expected in the three months to October, leading investors to scale back rate cut bets for next year and boosting sterling.
• The BoE is expected to keep rates unchanged this week, following the U.S. Federal Reserve's likely quarter-point rate cut announcement.
•At GMT 18:28, Sterling was last up 0.29% on the dollar at 1.2718, its highest since Dec 12th
• Immediate resistance is located at 1.2724 (38.2%fib), any close above will push the pair towards 1.2787(Dec12 th high).
•Support is seen at 1.2665(Daily low) and break below could take the pair towards 1.2590(23.6%fib).
Recommendation: Good to buy around 1.2690 with stop loss of 1.2600 and target price of 1.2800
