The GBP/USD made a bearish bounce at the resistance trend line (red). The uptrend channel is still intact but the pattern is starting to resemble a rising wedge reversal chart pattern.
The GBP/USD is now testing the support trend line (blue), which is a key decision for a bounce or break. A bullish bounce could indicate the continuation of the uptrend channel whereas a bearish breakout could see price break the rising wedge pattern and show a reversal or larger pullback.
The GBP/USD needs to break below the key support zone before a bearish reversal or larger correction could take place. At the moment price is testing the potential Fibonacci retracement levels of wave 2 vs 1 and also the overall support zone (green lines). A bullish bounce could indicate an uptrend continuation with as potential target the 1.3250-1.33 zone. The wave patterns are showing two different wave counts: a completed ABC pattern or an extend uptrend via a wave 1-2 (light blue).