The GBP/USD made a strong bearish bounce at the main target around 1.3275-1.33 and price has broken below the support trend line (dotted blue) for a potential bearish reversal.
The GBP/USD could have completed that bullish correction within wave 4 (pink) and could be ready for a bigger bearish reversal.
The GBP/USD could be in a wave 3 or 4 (green) as long as price stays below the 61.8% Fibonacci resistance level. One more bearish wave could complete a wave 5 (green) of a larger wave 1. An ABC could then occur within wave 2 before a larger downtrend continues. A break above the previous top indicates an invalidation of the downtrend.
