• GBP/USD declined on Tuesday as sterling was weighted down after dollar was bolstered by positive U.S. data and upbeat economic reports from China and Germany.
   
• U.S. data showed factory activity accelerated to a two-year high in December amid a surge in new orders and employment.
   
• The Institute for Supply Management (ISM) said its index of national factory activity rose 1.5 percentage points to a reading of 54.7 last month, the highest since December 2014.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2388 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2316, a break above this level would expose the cable to next resistance level at 1.2388 levels.
   
• To the downside strong support can be seen at 1.2250, a break below at this level will open the door towards next level at 1.2193.
  
  Resistance Levels
  
  R1:  1.2316 (61.8 % Retracement level)
  
  R2: 1.2388 (Dec 30th high)
  
  R3: 1.2429 (Dec 19th high)
  
  Support Levels
  
  S1: 1.2250 (50 % Retracement level)                       
  
  S2: 1.2193 (Session lows)
  
  S3: 1.2117 (23.6 % Retracement level)