The GBP/USD is testing a key confluence zone of resistance (red / orange). This could either complete an ABC (green) within wave 4 (purple) or start a larger bullish move if price breaks up.
A bullish breakout above the 50% Fibonacci level could see a continuation towards the 61.8% Fib whereas a bearish bounce could see price move down to test the support trend line (blue).
The GBP/USD seems to be building a sideways pattern within a potential wave 4 (orange) as long as price stays above the 38.2-50% retracement levels. A break below the 50% Fib makes a wave 4 less likely and a bearish breakout more likely whereas a bullish bounce or breakout could see price move higher within wave 5.
