The GBP/USD is challenging the support trend line (blue) after bouncing at the 38.2% Fibonacci retracement level. A bearish breakout below the support could confirm the continuation of the downtrend within wave 5, whereas a break above the resistance (red) could indicate a breakout towards the 50% Fib. The wave 4 is invalidated if the price breaks above the bottom of wave 1, which is indicated by the orange trend line.
The GBP/USD bearish breakout could confirm a continuation of the wave 3 (blue). A bullish bounce at the support could see the price make a retracement within wave 4, but a break above the 50% Fib indicates that a different wave pattern is valid.This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.