The GBP/USD could be in a bearish wave C (blue) of a larger wave B (purple). The bearish breakout is probably a wave 3 (dark red). The current pullback is likely a shallow wave 4 (dark red). The next breakout below the support line (blue) could confirm (green check) the bearish continuation in the wave 3 patterns.
The GBP/USD completed a potential ABC (green) pattern within wave 4 (dark red) at the 50-61.8% Fibonacci resistance zone. The bearish breakout is aiming for the Fibonacci targets of wave 3 vs 1. An unexpected break above the resistance invalidates (red x) this bearish outlook.
