FXStreet notes that GBP/USD broke below the uptrend from March and 55-day average at 1.2423 last week and analysts at Credit Suisse look for a more important turn lower with the next meaningful support seen at 1.2278.

“Last week may prove to be decisive for GBP/USD with key supports from the uptrend from March broken and 55-day average removed and with daily MACD momentum having turned lower. With the cross having also essentially rejected its 200-day average in early June we believe this sharply increases the likelihood we are seeing the beginning of an important turn lower.” 

“Below 1.2336 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. Beneath here in due course though should reinforce the downturn with support seen next at 1.2164/62 and then the 50% retracement of the rally from March at 1.2112.”

“Immediate resistance is seen at the 55-day average at 1.2423, then price resistance and Friday’s high at 1.2455/56, with the back of the broken uptrend now ideally capping any rebound, currently placed at 1.2481.”