• GBP/USD fell sharply on Friday as sterling came under pressure from weak business activity data..
• Data showed British business output in November shrank for the first time in more than a year, and retail sales also fell by much more than expected in October.
• Traders expect the Bank of England to keep interest rates unchanged next month but anticipate around 72 basis points of cuts next year, up from 67 bps before the data release.
• Immediate resistance is located at 1.2622( 50%fib), any close above will push the pair towards 1.2651( SMA 9)
• Strong support is seen at 1.2492(23.6%fib) and break below could take the pair towards 1.2400(Psychological level).
Recommendation: Good to sell around 1.2530 , with stop loss of 1.2600 and target price of 1.2430
