The GBP/USD made a close and reverse at the 100% Fibonacci level of wave Y vs W. The bearish reversal occurred quickly and broke below the support trend lines (dotted blue) for a bearish trend continuation after completing wave 4 (pink).
The GBP/USD completed a complex corrective WXY (blue/purple) wave pattern within wave 4 (pink). The current bearish price action is probably part of a wave 5 (pink) of wave 5 (purple). A new low is expected after a consolidation pattern appears.
The GBP/USD is expected to respect the 38.2-50-61.8% Fibonacci retracement levels for a bearish bounce and bearish continuation. Keep in mind though that price could make an extended sideways pattern in this spot. Price could go flat and build a triangle chart pattern for instance. Eventually a bearish breakout is expected which should aim for the -27.2% Fibonacci target at the very minimum.
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