• GBP/USD firmed on Friday after data showed UK factory activity grew at its fastest pace in 15 months in December
• Britain’s factory sector expanded at its fastest pace in 15 months in December, though growth was weaker than initially estimated, while confidence slipped despite some relief over finance minister Rachel Reeves’ budget, a survey showed.
• The S&P Global manufacturing PMI rose to 50.6 in December from 50.2 in November, but came in below the preliminary flash estimate of 51.2.
• New orders rose slightly in December for the first time since September 2024, while the PMI showed signs of stabilisation in exports and hiring after a period of weakness.
• Immediate resistance is located at 1.3555(38.2%fib), any close above will push the pair towards 1.3612( Higher BB)
• Strong support is seen at 1.3488(50%fib) and break below could take the pair towards 1.3408 (SMA 20).
Recommendation: Good to buy around 1.3460, with stop loss of 1.3350 and target price of 1.3540
