The GBP/USD is showing two different waves 4 (purple/green), which are contradictory to each other because one of the two must eventually be invalidated. A breakout above the top could confirm (green check) the wave 5 (green) pattern but invalidate the wave 4 (purple) retracement. A bearish breakout below 1.25 could make the wave 4 (purple) more likely.
The GBP/USD strong bullish momentum is indicating that a bearish wave 5 (dark red) of the wave C (orange) has been completed at the recent low. The bullish impulse is probably a wave 3 (dark red) and the current pullback is a potential wave 4 (dark red) as long as the retracement stays above the 61.8% Fib and the support trend line (blue), otherwise this pattern becomes invalidated (red x). A bullish breakout (green x) could confirm the uptrend continuation towards the Fibonacci targets.
