The GBP/USD bearish continuation within wave C (orange) seems likely after price completed a wave B (orange) correction. The main target is the 50% Fibonacci level of wave 4 (blue) at 1.2850, which is a key bullish bounce or bearish break spot.
The GBP/USD completed a bullish ABC (dark red). Price then broke below support (dotted blue). Price is now testing the Fibonacci retracement levels of wave 4 vs 3 (green), which are likely to act as a bearish bounce spot. The wave 4 remains valid as long as price stays below the 61.8% Fib. A bullish break invalidates (red x) this wave outlook. A bearish breakout, pullback, and continuation would confirm (green check) the wave 5 (dark red).
