The GBP/USD has been building a bullish correctionwithin the larger downtrend channel for the past several trading days.
The GBP/USD could be in a larger bullish correction such as a wave 2 (pink) if price manages to break above the bearish channel. At the moment a larger WXY (purple) correction seems to be the most likely scenario.
The GBP/USD is probably building a corrective wave 4 (green) within the minor bullish channel on this 1 hour chart. A bullish bounce at the Fibonacci levels of wave 4 vs 3 could confirm the wave 4, just like a bullish breakout above the counter trend line. A break below the support of the channel and 61.8% Fib makes a wave 4 less likely.
