GBP/USD Technical Analysis: Has eroded trendline from Oct. 16 highs

• The GBP/USD pair has cleared the falling trendline from Oct. 16 highs on Brexit optimism, confirming that a temporary low has been made at 1.2696.
• The spot has also found acceptance above the 50-hour and 100-hour EMAs, which has bottomed out (shed bearish bias).
• However, the hourly relative strength index (RSI) is reporting overbought conditions. Hence, a break above the 200-hour EMA of 1.2860 may remain elusive for the next couple of hours. Moreover, a minor pullback could yield a more sustained move above the key average.
• The bullish view would be negated if the currency pair falls back below the trendline.

Hourly Chart

Trend: Bullish