GBP/USD has lost nearly 80 pips despite upbeat UK manufacturing PMI data. The data came at 54.2 for the month of Dec compared to forecast of 53.1. The pair hits low of 1.26985 and is currently trading around 1.26878.
The pair has recovered more than 300 pips from the low of 1.24800on account of broad based US dollar selling , dovish Fed and partial US government shutdown. The parliament debate on the UK PM Brexit agreement is expected to happen on Jan 7th 2019 and voting is set to take place before Jan 21st 2019.
On the lower side, near term support is around 1.2660 and any break below will take the pair to next level till 1.2600/1.2525/1.24800.
The major resistance is around 1.28200 and any break above targets 1.2865/1.2930. The pair should close above 1.3000 for further bullishness.
It is good to sell on rallies around 1.2755-60 with SL around 1.2825 for the TP of 1.2600.
