FxWirePro: GBP/USD loses momentum but bullish setup remains

• GBP/USD edged lower on Tuesday as traders shifted their attention to a busy slate of U.S. economic data this week for insight into the policy outlook..

• Friday’s U.S. employment report will be crucial in guiding expectations for the monetary policy outlook, an especially important factor for the dollar..

• U.S. manufacturing activity contracted more sharply than expected in December, marking a tenth consecutive month of decline.

•The Institute for Supply Management said on Monday that new orders declined again, while input costs continued to rise as the sector remains affected by President Trump’s import tariffs.

• Technical signals are  strongly bullish  as RSI is   at 61, daily momentum studies  5, 9 and 10 DMAs are trending up.

•   Immediate resistance is located at 1.3578( 38.2%fib), any close above will push the pair towards 1.2410 (50%fib)

•  Strong support is seen at 1.3470(38.2%  fib) and break below could take the pair towards 1.3439(SMA 20).

  Recommendation: Good to buy around 1.3470 with stop loss of 1.3380 and target price of 1.3560