The GBP/USD is challenging the support trend line (blue) after bouncing at the 38.2% Fibonacci retracement level. A bearish breakout below the support could confirm the continuation of the downtrend within wave 5, whereas a break above the resistance (red) could indicate a breakout towards the 50% Fib. The wave 4 is invalidated if the price breaks above the bottom of wave 1, which is indicated by the orange trend line.
The GBP/USD bearish breakout could confirm a continuation of the wave 3 (blue). A bullish bounce at the support could see the price make a retracement within wave 4, but a break above the 50% Fib indicates that a different wave pattern is valid.
