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
GBPUSD stays below the swing area resistance up to 1.30956
