The GBPUSD fell sharply at the open, extending below a key swing area between 1.3298 and 1.3305. The downside momentum pushed the pair to a session low at 1.3282 before buyers stepped in and sparked a rebound.

That recovery gathered momentum as the price moved back above the 100-hour moving average at 1.3347, where it briefly based before extending higher over the last several hours. The reversal has been helped by a broader improvement in risk sentiment, with lower oil prices, lower yields, and a rebound in equities supporting the move away from earlier bearish pressure.

Looking ahead, the pair is now approaching a key resistance zone defined by the 100-day moving average at 1.3395 and the falling 200-hour moving average at 1.3403. This area has proven important before. On February 27, the rally stalled near a similar convergence of moving averages before the pair turned sharply lower over the following two sessions, eventually bottoming at 1.32523.

Since that low, price action has been corrective but volatile, with swings in both directions. That pattern of two-way volatility continues to start the new trading week.

From a technical perspective, a break above the 200-hour moving average would give buyers more control. The next upside targets would be the 50% midpoint of the February decline at 1.3413, followed by the 200-day moving average at 1.3442. Above that level, traders would look toward the 61.8% retracement at 1.3451 as the next key upside objective.