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The GBP/USD pair is trading near to intraday highs, around the 1.2855-60 region. However, slightly overbought conditions on short-term charts held investors from placing any further bullish bets. The stubborn 1.2875-80 resistance should cap any strong gains for the cable, according to FXStreet’s analyst Haresh Menghani.

Key quotes

“A sustained move beyond the 1.2800 mark supports prospects for additional gains. However, slightly overbought conditions on the daily chart warrant some caution before placing aggressive bullish bets. Hence, any further move up is more likely to confront stiff resistance, rather remain capped near the 1.2875-80 region.”

“On the flip side, the 1.2800 round-figure mark now seems to protect the immediate downside, which if broken might prompt some technical selling and accelerate the slide further towards the 1.2765-60 region. That said, the dip might still be seen as a buying opportunity and seems more likely to remain limited.”