We see GBPUSD unfolding a new bearish reversal, away from the 1.3264 level, where resistance and a probable top was found. That said, ideally a bigger corrective wave IV) was completed and now a minimum three-wave reversal lower is expected to follow, with first wave 1 already completed. A later breach below the 1.2591 swing low would confirm a change in trend.
GBPUSD, Daily
On the 4h chart however we see price trading bullish, but beware this bullish activity from 1.2773 level may be only temporary as we think it can be a higher degree wave two. Ideally this corrective wave two will search for a top near the Fibonacci ratio of 50.0/61.8 and near the former swing high of wave 2) at 1.3023 level and there make a new reversal lower.
GBPUSD, 4H
