The GBP/USDbearish momentum is strong and broke below the previous bottom which is indicating a downtrend continuation or expanded correction.
The GBP/USD failed to break above the resistance trend line (red) of the downtrend channel. The bearish bounce was expected but the bearish momentum was stronger than anticipated, which makes a bullish breakout unlikely in the near future. Price is either building a WXY (blue) correction within wave X (purple) or price is in a new downtrend.
The GBP/USD broke below support (dotted blue) as expected. This could be a bearish ABC (green) pattern within wave X (purple) if price manages to bounce at the Fibonacci levels. A break below the support (green) and Fib levels however makes a downtrend more likely.
