GBP/USD technical analysis: 1.2750/60 likely questioning Cable’s strength

• Highs during the recent fortnight and overbought RSI levels may limit further upside.
• 4H 200MA acts as additional strong resistance.

Although GBP/USD pair remains at the 9-day high ahead of the UK open on Wednesday while trading near 1.2715, more than a fortnight old horizontal area might question pair’s immediate rise.

The 1.2750/60 area comprising highs marked since May 17 seems limiting the Cable’s adjacent upside, a break of which can propel the moves to 1.2800 round-figure and then to a mid-May low near 1.2825.

However, overbought levels of 14-bar relative strength index (RSI) can limit the quote’s additional north-run around 200-bar simple moving average on the 4-hour chart (4H 200MA) close to 1.2855.

Alternatively, 1.2670 and 1.2610 may entertain short-term sellers ahead of pleasing them with latest lows surrounding 1.2560.

Given the pair’s extended south-run under 1.2560, December 2018 low around 1.2480 should be looked while holding short positions.

GBP/USD 4-Hour chart

Trend: Pullback expected