GBP/USD technical analysis: Up 20 pips in Asia, falling channel breakout on 15-min

• GBP/USD’s 15-min chart is reporting a bearish channel breakout.  
• The breakout may be short-lived, as the daily chart is reporting oversold conditions.  

GBP/USD is currently trading at 1.3357, representing a 20-pip gain on the day.  

The minor move upwards has confirmed a descending channel breakout on the 15-minute chart.  

The pattern indicates the pullback from the 19-month high of 1.3315 reached on Friday has ended and a fresh move toward 1.34 could be in the offing.  

The breakout, however, could end up trapping the buyers on the wrong side of the market, as the long upper wick attached to Friday’s candle is signaling buyer exhaustion.  

Further, the pair is looking most overbought since January 2018, according to the 14-day relative strength index (RSI).  

As a result, the probability of a fall back to 1.33 is high.  

15-min chart

Trend: Overbought

Technical levels