GBP/USD Technical Analysis: Highly overbought conditions might prompt some profit-taking/cap further gains

   •  The pair extended its strong bullish momentum and surged to an intraday high level of 1.3338 - the highest since July 2018 during the mid-European session on Wednesday. 

   •  The overnight break through a confluence region - comprising of 38.2% Fibo. level of the 1.4377-1.2396 downfall and a descending trend-line was seen as a key trigger for bulls.

   •  Meanwhile, technical indicators on hourly/daily charts are now pointing to highly overbought conditions and might act as the only factor capping any follow-through up-move.

   •  Hence, any subsequent move seems more likely to witness some profit-taking near 50% Fibo. level, around the 1.3385 region, given an upsurge of over 350-pips since Friday.

GBP/USD daily chart