There was sharp two-way volatility in the GBPUSD following the U.S. data release at 8:30 AM ET. The pair initially dropped to a low of 1.30425, then quickly reversed higher, with the rebound extending to 1.3095.
On the hourly chart, that rebound high matches the top of a recent swing area between 1.30837 and 1.30956 (see the red-numbered circles on the chart). A move back above this zone would likely trigger additional short covering in the near term, with the 100-hour moving average at 1.31297 as the next key upside target.
Conversely, holding below the swing area keeps sellers in control. A break **below 1.30837—and staying below—**remains the key barometer for traders looking to reassert downside momentum.
