• GBP/USD declined on Thursday as the pound came under selling pressure on the back of a decision by the European Central Bank to extend monthly asset purchases until next December albeit at a lower monthly level.
   
• Having rose as high as $1.2698 before the ECB meeting, sterling declined to hit the daily low at $1.2570.
   
• Currently, the pair trading at 1.2589, a short rise towards 1.2630 levels should be viewed as selling opportunities as the resistance level at 1.2634 is set to hold the bulls from advancing further above and push the pair towards lower levels in the short term.
   
• To the upside, immediate resistance can be seen at 1.2634, a break above this level would expose the cable to next resistance level at 1.2711.
   
• To the downside, immediate support can be seen at 1.2556 a break below at this level will open the door towards next level at 1.2500.
  
  Resistance Levels
  
  R1:  1.2634 (50% Retracement level)       
  
  R2: 1.2711 (61.8% Retracement level)    
  
  R3: 1.2773 (Dec 6th high)
  
  Support Levels
  
  S1: 1.2556 (38.2% Retracement level)                    
  
  S2: 1.2500 (Psychological levels)
  
  S3: 1.2458 (23.6% Retracement level)