Bank of America Global Research discusses GBP/USD technical outlook and flags the formation of a diamond top on the monthly chart.

"A diamond top pattern suggests the uptrend from the 2022 low is at risk of ending. In 3Q26, we favor following the breakout, which looks like it may be lower," BofA notes.

"A monthly and/or weekly close below 1.32 will start to break the support of the top pattern and the uptrend line from the 2022 lows. Below 1.3010 breaks the low of the pattern. 

Downside targets to consider include 1.2790-1.2775 and 1.2580. However, a strong rebound above 1.3509 / 1.3660 could suggest this is not a top and upside to the 200m SMA at about 1.40 may follow," BofA adds.