• The GBP/USD pair rose on Wednesday as upbeat UK manufacturing data, and a pause in the U.S. currency's upward march, pulled the pound up from a two-month low.
   
• British manufacturing growth climbed to a two-and-a-half-year high last month, fuelled by new orders from both home and abroad and adding to signs the economy ended 2016 strongly.
   
• The Markit/CIPS UK Manufacturing Purchasing Managers Index (PMI) rose to 56.1, the strongest reading since June 2014, from 53.6 in November.
   
• However, further upside is expected to be limited as the pound presents negative tone and is set to resume downward momentum against the dollar.
   
• To the upside, the strong resistance can be seen at 1.2351, a break above this level would expose the pair towards next resistance level at 1.2386.
   
• To the downside immediate support can be seen 1.2284, a break below at this level will open the door towards next level at 1.2215.
  
  Resistance Levels
  
  R1:  1.2351 (61.8 % Retracement level)  
  
  R2: 1.2386 (Dec 30th high)
  
  R3: 1.2485 (Nov 25th high)
  
  Support Levels
  
  S1: 1.2284 (50% Retracement level)        
  
  S2: 1.2215 (38.2% Retracement level)    
  
  S3: 1.2131 (23.6% Retracement level)