The GBP/USD pair continued to build on its recent intraday strength, successfully breaking above a minor corrective bearish trendline on the short-term chart. This move was bolstered by a breach of the 50-period Exponential Moving Average (EMA50), indicating a reversal of prior downside pressure and confirming a bullish trajectory in the near term.
Momentum indicators, particularly the Relative Strength Index (RSI), are signaling further bullish intent. However, the RSI is now approaching overbought territory, suggesting that the current rally may experience a brief pause or consolidation as the market works off these elevated conditions.
Outlook:
While the broader trend now favors further gains, traders should watch for short-term pullbacks as overbought levels are alleviated before potential upward continuation.
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