• GBP/USD declined sharply on Monday as sterling was weighted down after talk of Britain drastically reworking trade ties with the European Union after Brexit sent the pound tumbling to two-month lows.
   
• A stronger U.S. dollar also added losses for the Sterling as signals that U.S. interest rates could rise three times this year lifted the dollar.
   
• Further upside for this pair is expected to be limited as strong resistance level at 1.2334 is set to limit upside and bring decline towards lower levels.
   
• To the upside, immediate resistance can be seen at 1.2229, a break above this level would expose the cable to next resistance level at 1.2334 levels.
   
• To the downside strong support can be seen at 1.2114, a break below at this level will open the door towards next level at 1.2076.
  
  Resistance Levels
  
  R1:  1.2229 (50% Retracement level)
  
  R2: 1.2334 (61.8 % Retracement level)
  
  R3: 1.2400 (Psychological levels)
  
  Support Levels
  
  S1: 1.2114 (38.2 % Retracement level)                   
  
  S2: 1.2076 (Oct 26th lows)
  
  S3: 1.1990 (23.6 % Retracement level)