The GBP/USD downtrend was close to reaching the 1.35 round level, which could be a new bounce or break spot. The bearish momentum is unable to break below the channel support and could make a larger correction. As long as price stays in the bearish channel, price could make a continuation towards the Fibonacci targets but a bullish break would indicate the completion of wave 1 (pink) and the start of wave 2.
The GBP/USD is probably building a wave 4 (green) correction and price could respect the Fibonacci levels and make a bearish bounce and continuation towards the Fib targets of wave 5. A break above the 61.8% Fib and resistance trend line (red) makes the current wave 4 less likely.
