The GBP/USD bearish momentum is slightly weakening but price action remains solidly in downtrend. A bearish breakout below the 1.35 support zone could see price fall towards the Fibonacci targets of wave 5 (purple). Price action remains bearish as long as price stays below the resistance trend line (red) but a bullish break above that resistance would indicate the completion of wave 1 (pink) and the start of wave 2.
The GBP/USD could have completed a bullish retracement to the Fibonacci levels of wave 4 (green) which could act as a reversal zone for a downtrend continuation. A break above the 61.8% Fibonacci retracement level could indicate the potential end of the downtrend whereas a break below the support trend line (green) could indicate a downtrend continuation towards the Fibonacci targets of wave 5 (green).
