The GBP/USD seems to be building a WXY (orange) correction within wave 4 (green). Price is expected to retest the 23.6% or 38.2% Fibonacci retracement levels of wave 4 vs 3, which should be bearish bouncing spots for a bearish trend continuation. An immediate breakout below 1.2575 could indicate a failure of price to move higher and start a move lower towards 1.25.
The GBP/USD seems to have completed a bearish ABC zigzag (dark red) pattern within wave X (orange) and could be ready for a similar bullish ABC (dark red) wave pattern. If the expected wave pattern is correct then the Fibonacci levels of wave B vs A should be used a support and price may not break below the previous bottom.
