The smaller head and shoulders pattern that emerges from the range-bound trading in GBPUSD has been validated.
This potentially signals a move back to the lower end of the range at 1.2277.
Given that GBPUSD has breached the neckline support at 1.2423, the downside could continue.
Any retracements will see the neckline support coming in to act as resistance.
As long as prices remain below this price level, we expect a move lower to 1.2277 support.