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 h…
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.
