The GBP/USD is challenging the 1.30 resistance, which is a key decision zone for a bullish breakout or bearish bounce. The current wave outlook favors a bearish bounce as part of a wave B (dark red), which becomes invalidated (red x) if price manages to break above the 138.2% Fib of wave B vs A. A bullish bounce at the Fibonacci levels of wave 4 vs 3 could confirm (green check) the bullish continuation unless price breaks below the 50% Fib (red x).
The GBP/USD could be completing a wave C (grey) impulse within a complex WXY (light green) correction. A bearish breakout below the support trend lines (blue) could confirm the bearish wave outlook whereas a bullish breakout above the Fibonacci levels would invalidate (red x) it. Bearish price swings could take price lower and complete a wave Y (orange).
