• GBP/USD inched higher on Wednesday as sterling recovered from the previous day's eight-week low hit on worries of a painful and prolonged Brexit.
   
• Having rose as high as $1.2257 early in the European session, Sterling fell back below $1.2200, halving those gains after the data showed a dip in wages growth.
   
• Data showed growth in pay including bonuses slipped to 2.2 percent in the three months to January, the weakest since the three months to April last year and worse than forecast.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2313 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2257, a break above this level would expose the cable to next resistance level at 1.2313 levels.
   
• To the downside strong support can be seen at 1.2189, a break below at this level will open the door towards next level at 1.2109.
  
  Resistance Levels
  
  R1:  1.2257 (Daily high)
  
  R2: 1.2313 (61.8 % Retracement level)
  
  R3: 1.2400 (Psychological levels)
  
  Support Levels
  
  S1: 1.2189 (38.2 % Retracement level)                   
  
  S2: 1.2109 (23.6 % Retracement level)
  
  S3: 1.2038 (Jan 11th lows)