• The GBP/USD pair initially declined at the beginning of the US session but inched slightly higher as U.S. dollar retreated as investors evaluated whether the Federal Reserve will let inflation run above target before raising interest rates.
   
• However, sterling remains in strong bearish tone against dollar and selling is set to continue in the short term.
   
• The currency pair is trading at 1.2180 levels, it is set to decline further towards 1.2100 and later 1.2000 levels in the short term.
   
• To the upside, the strong resistance can be seen at 1.2260 a break above this level would expose to cable to next resistance level at 1.2323.
   
• To the downside immediate support can be seen at 1.2135, a break below will open the door towards next level at 1.2055.
  
  Resistance Levels
  
  R1: 1.2200 (50% Retracement Level)
  
  R2: 1.2260 (61.8% Retracement Level)
  
  R3: 1.2323 (Oct 12th high)
  
  Support Levels
  
  S1: 1.2135 (38.2% Retracement Levels)
  
  S2: 1.2055 (23.6% Retracement Levels)
  
  S3: 1.2000 (Psychological levels)