The GBP/USD uptrend continues to lose momentum, and economists at Credit Suisse look for a test and then break of key uptrend support at 1.2594.

The immediate risk is shifting lower

With weekly RSI momentum unable to confirm the new highs and with daily MACD momentum turning lower we believe the immediate risk is shifting lower. 

Key support is seen from the uptrend from September last year and last week's low at 1.2594/90, below which should see downside pressure increase further for a test of the 55-DMA next, currently at 1.2542. A close below here would then be seen to expose 1.2485 next.

Resistance is seen at 1.2729 initially, with a break above 1.2761 seen needed to ease the immediate downside bias for strength back to 1.2843/50. Above here can clear the way for strength to 1.2894/1.2900 next, then what we look to be tougher resistance at the March/April 2022 lows at 1.2973/1.3000.