• GBP/USD held steady on Monday as investors looked towards employment and inflation data later in the week.
• Economic data will be crucial for the pound this week, following the Bank of England's interest rate cut and cautious stance on price pressures.
• Analysts expect Tuesday's data to show a slight increase in average earnings growth for December, while unemployment is expected to rise to 4.5% from 4.4% in November..
• Wednesday's data is expected to show inflation rose to 2.8% year-on-year in January, up from 2.5% in December.
• At GMT 12:08, The pound was last trading up 0.10% to $1.2602 against US dollar.
• Immediate resistance is located at 1.2645(38.2%fib), any close above will push the pair towards 1.2734(Dec 18th high).
• Support is seen at 1.2537(38.2%fib) and break below could take the pair towards 1.2247(Jan 2nd low).
Recommendation: Good to buy around 1.2580 with stop loss of 1.2500 and target price of 1.2650
