Taking a look at the GBP/USD forex pair as it seems that the cable is now a little overbought for the near-term view. Currently the pair trades at around $1.3399, with what we can see on the daily chart a pattern of higher lows followed by higher highs since April. We can also see that every time since July when the RSI indicator entered the overbought territory, the pair sold off lower. The RSI is once again within this territory as it recorded a reading of 73 yesterday. Therefore, the likelihood of yet another move lower to form a higher low has now increased. Towards the downside, the support here for traders in the near term is firstly the level of $1.3332, which is yesterday’s low point. A break below here could then shift the focus towards $1.3248 at which point the pair would need re-analysing to determine further price action. To eliminate the possibility of a pullback, a move above the most recent high of $1.3429 would be required with a clear close. Markets can sometimes overshoot, trapping traders before moving/continuing in the opposite direction. Although, if a close above this high were to occur, then the path toward $1.35 could be clear. The MACD is suggesting bullish momentum, however, so far it has not created a higher high compared to the price itself. This may be a suggestion of a possible bearish divergence in the near term.