The GBP/USD is challenging the support trend line of the bear flag chart pattern after bouncing at the 23.6% Fibonacci retracement level. A bearish breakout could indicate the restart of the downtrend and aim for a target zone at 1.30.
The GBP/USD is now probably in a wave 4 (purple) correction and the bearish breakout could start wave 5. A bullish bounce could see price challenge the 38.2% Fibonacci levels first but a break above the 50% makes a wave 4 less likely.
The GBP/USD seems to be in a wave 4 (orange) but a break below the 61.8% Fib makes this wave count unlikely and a larger bearish trend could start. In that case the wave C of wave Y of wave 4 is probably already completed. A bullish breakout could indicate an extension higher towards the 38.2% Fib.