• GBP/USD recovered from nine-month low on Friday, but gains were limited as the latest data reinforced concerns about a slowing British economy.
• A survey released on Thursday showed that British factory activity shrank at the fastest pace in 11 months in December, with manufacturers reducing staffing levels due to higher taxes and weak foreign demand.
• Weak domestic data, coupled with ongoing challenges such as high inflation and uncertainty surrounding economic policy, capped any substantial upward movement in the currency pair.
• Immediate resistance is located at 1.2415(Daily high), any close above will push the pair towards 1.2487(50%fib)
• Strong support is seen at 1.2357(23.6%fib) and break below could take the pair towards 1.2323(Lower BB).
Recommendation: Good to sell around 1.2430 , with stop loss of 1.2550 and target price of 1.2350
