the GBP/USD is building a bear flag corrective chart pattern, which often indicates a continuation of the downtrend. The GBP/USD is now waiting for a break below the support trend line (blue) to confirm the breakout.
The GBP/USD seems to have finished a bullish swing which probably has completed the entire wave 4 (green) correction. A bullish breakout is aiming for the Fibonacci targets of wave 5 vs 1+3 at around 1.25 and then 1.24.
The GBP/USD bullish price action failed to break above the previous top, which confirms the expected wave 1-2 (orange) pattern that we mentioned in ecsLIVE for the past few days. There are several other bearish reversal patterns present, including a double top, head and shoulders pattern (dark red boxes), a rising wedge reversal pattern, and a larger bear flag pattern. Price is now building a bear flag and a break below the support trend line (blue) would confirm the bearish breakout. This break could either be a wave 3 (orange) as indicated in the image or a wave C if the wave 4 correction becomes expanded.
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