The GBP/USD bounced at the support trend line (green) and is expanding the bear flag chart pattern. Price could challenge the 23.6% Fibonacci level of wave 4 around 1.3450-1.35.
The GBP/USD seems ready to test the Fibonacci levels of wave 4 vs 3 which could act as resistance spots. A bearish break below the bear flag chart pattern could indicate the start of wave 5 (purple).
The GBP/USD broke above yesterday’s 50% Fib at 1.3340 which indeed created bullish price action. Price is now in a wave C (green) but needs to break above the trend line to make the last push towards the Fib levels. A bearish turn could still find support at around 1.3350.
