• GBP/USD pair slipped back towards 1.3050 as sellers stepped in on Monday as Brexit negotiations began in Brussels.
   
• Four days of Brexit negotiations began in Brussels with the UK papers full of warnings from academics, commentators and former senior civil servants of the chaos that the process may generate for British government and business.
   
• The pound jumped almost 2 cents on Friday to hit $1.3113, its strongest since last September, after U.S. inflation and retail sales data came in weaker than expected.
   
• Investors will be watching the talks closely, with any signs that Britain will lose preferential access to Europe's single market likely to weigh on the currency.
   
• Currently, the currency pair is trading at 1.3060 levels, it is set to decline further towards 1.3000 and later 1.2980 levels in the short term.
   
• To the upside, the strong resistance can be seen at 1.3126, a break above this level would expose to cable to next resistance level at 1.3200.
   
• To the downside immediate support can be seen at 1.3000, a break below will open the door towards next level at 1.2933.
  
  Resistance Levels
  
  R1: 1.3126 (50% Retracement Level)
  
  R2: 1.3200 (Psychological level)
  
  R3: 1.3248 (61.8% Retracement Level)
  
  Support Levels
  
  S1: 1.3000 (23.6% Retracement Levels)
  
  S2: 1.2933 (July 14th lows)
  
  S3: 1.2843 (23.6% Retracement Levels)