Credit Suisse discusses GBP/USD technical outlook and maintains a tactical bearish bias against a move back above 1.2332.
"The GBPUSD recovery has been capped below the “neckline” to the “double top” at 1.2248 on a closing basis, as well as exactly below the 38.2% retracement of the fall from late April and the falling 13-day average at 1.2271/96 intraday. This maintains the top and keeps our bias directly lower, with support seen at 1.2184/74 initially. Beneath here is needed to reassert a bearish bias for a move back to 1.2118, then 1.2076/67. A break here can target the 50% retracement of the rally from March at 1.2030, then the long-term uptrend from 1985 at 1.1992," CS notes.
"Above 1.2271/96 can see a test of the 55-day average, currently at 1.2332, but with a close above here needed to see the top negated and the trend turn neutral, with resistance then seen next at 1.2428/38, before 1.2467," CS adds.