the GBP/USD tested the previous top and resistance trend line (red) but so far has failed to break above it. The break of the trend line (dotted blue) could indicate a bearish bounce.
The GBP/USD remains in a downtrend channel but the angle is shallow and price could build a consolidation zone and triangle chart pattern before the UK parliament votes on the Brexit deal next week Tuesday 15 January 2019. The downtrend continuation could be part of wave 5 (pink) of wave 5 (purple).
The GBP/USD invalidates wave 2 (purple) if price breaks above the previous top and 100% Fibonacci level. A break below the support (blue) trend line confirms the potential bearish breakout but price could be building a larger ABCDE correction (blue).
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.