GBP/USD Faces Volatility Below 1.30956 After U.S. Data Release

URGENT UPDATE: The GBP/USD currency pair is experiencing significant volatility, remaining below the critical resistance level of 1.30956 following the latest U.S. economic data released at 8:30 AM ET.

Traders witnessed sharp fluctuations as the pair initially plunged to a low of 1.30425, only to quickly rebound to 1.3095. This recovery aligns closely with the recent swing area, indicating a crucial resistance zone between 1.30837 and 1.30956.

Market analysts warn that a decisive move above this swing area could trigger significant short covering, potentially driving prices toward the next key upside target of 1.31297, represented by the 100-hour moving average. Conversely, staying below this resistance zone keeps sellers firmly in control, maintaining downward pressure on the currency pair.

A critical threshold for traders is the 1.30837 mark—breaking below this level and remaining there could signal a reassertion of downside momentum, impacting market sentiment and positioning.

As the situation develops, traders and investors are advised to remain vigilant. The fluctuations in GBP/USD not only reflect the immediate impact of U.S. economic data but also highlight the ongoing volatility in the forex markets, underscoring the need for careful monitoring.

What happens next could reshape trading strategies in the coming hours. Stay tuned for further updates as this situation evolves.