GBP/USD trades near daily lows amid overbought conditions

The GBP/USD pair extends its steady intraday pullback and refreshed daily lows, around the 1.3300 mark, as Monday's 4-hour chart is showing that the cable remains overbought despite profit-taking, FXStreet’s analyst Yohay Elam briefs.

Key quotes

“The Relative Strength Index on the 4-hour chart is still around 70 – indicating overbought conditions. That implies the correction is not over just yet. Momentum remains to the upside and GBP/USD is still above the 50, 100, and 200 Simple Moving Average, signaling that in the bigger scheme of things, the uptrend remains intact.”

“Some resistance is at 1.3320, which was a temporary cap on the way up. More importantly, the fresh 2020 high of 1.3370 is strong resistance. Above that, the post-election peak of 1.3510 awaits GBP/USD.”

“Support is at 1.3265, a peak in mid-August, and it is followed by 1.3180 1.3150, and 1.3120 – all stepping stones on the way up.”