The GBP/USD broke above the resistance trend line (dotted orange) and is now testing the resistance line (red) of the downtrend channel. A bullish break of the downtrend channel could confirm a larger WXY (purple) bullish correction within wave 2 (pink). Price could move up to test the 38.2% Fibonacci retracement level of that wave 2 at 1.3550.
The GBP/USD could be building an ABC pattern (green) within wave B (blue) but there is also a chance that price has already completed wave B (blue) at the 38.2% Fibonacci level of wave B vs A. A break above the resistance trend line (red) could indicate an immediate bullish breakout within wave Y (purple).
