• GBP/USD declined on Friday as Sterling was weighted down on expectations that Britain's economy is likely to suffer from a hardline stance by the European Union in negotiations on the country's exit from the bloc.
   
• Sterling's slide has sent inflation expectations soaring, driving investors to reassess chances of further easing by the Bank of England this year.
   
• The pair made session low at 1.2159 but recovered slightly to trade at 1.2189 levels.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2274 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2208, a break above this level would expose the cable to next resistance level at 1.2274 levels.
   
• To the downside strong support can be seen at 1.2145, a break below at this level will open the door towards next level at 1.2059.
  
  Resistance Levels
  
  R1:  1.2208 (50% Retracement level)
  
  R2: 1.2274 (61.8% Retracement level)
  
  R3: 1.2334 (Oct 19th high)
  
  Support Levels
  
  S1: 1.2145 (38.2 % Retracement level)                   
  
  S2: 1.2059 (23.6 % Retracement level)
  
  S3: 1.2000 (Psychological levels)