• GBP/USD strengthened on Friday as weaker dollar and slightly better UK retail sales data support sterling
• Official data showed UK economic activity contracted by 0.1% in October, while economists had forecast a 0.1% rise following a 0.1% decline in September.
• British retail sales increased by a weaker-than-expected 0.2% in November, according to official data, which indicated that consumers had put aside concerns over the new government's first budget.
• At GMT 16:35, Sterling was last up 0.63% on the dollar at 1.2579.
• Immediate resistance is located at 1.2589 (50%fib), any close above will push the pair towards 1.2664(Dec 19th high).
• Support is seen at 1.2481(38.2%fib) and break below could take the pair towards 1.2440(Lower BB).
Recommendation: Good to buy around 1.2570 with stop loss of 1.2500 and target price of 1.2680
