Credit Suisse discusses GBP/USD technical outlook and maintains a bearish bias for a move towards 1.2278 over the coming weeks.
"GBPUSD has corrected higher over the past two days, however with key support at the uptrend from March broken and with daily MACD momentum having turned lower, our bias stays lower.
With the cross having also essentially rejected its 200-day average in early June, we believe this increases the likelihood we may be seeing the beginning of an important turn lower. Near term supports moves to 1.2432, then 1.2336. Below here and we see support next at 1.2292/91, then 1.2278 – the 38.2% retracement of the entire rally from March – which we would look to hold at first," CS notes.
"The back of the broken uptrend at 1.2518 is essentially capping, however a turn back higher today and a close above 1.2543/49 would remove the latent downside pressure and suggest the market is set to stay rangebound," CS adds.