The British pound has moved to a new 2018 trading-high against the greenback, hitting 1.3836, as the U.S dollar index plummeted lower overnight, alongside U.S equities. Price-action quickly reversed back below the 1.3800 level, after short-term RSI indicators moved into extreme overbought territory on the GBPUSD pair, and the U.S dollar recovered. Going forward the 1.3800 level remains a key benchmark for traders on Wednesday, with buyers increasingly likely to test further demand around this key technical level.
The GBPUSD pair retains a bullish bias while price-action trades above the 1.3721 level, further upside towards 1.3800 and 1.3836 seems likely.
Should price-action on the GBPUSD pair slip below the 1.3721 level, sellers will likely push price-action back towards the 1.3689 and 1.3657 levels.
