GBP/USD is breaking below the critical support trend line (dotted blue). What’s next for the Cable?
GBP/USD is probably still in bearish wave 5 (purple) of a wave 1 (blue) despite the bearish breakout because the bearish momentum in the recent push is less strong than the current wave 3 (blue). A strong bearish impulse is needed before the chance of this current wave pattern being a wave 3 increases.
GBP/USD broke below the bear flag chart pattern (dotted blue). The Cable seems to be expanding the 5th wave with another 5 waves (orange) unless price shows very strong bearish momentum, which then would make a wave 3 pattern more likely rather than a wave 1 (purple). For the moment price is falling towards the Fibonacci targets of wave 5 vs 1+3.