The GBP/USD broke below the support trend line (dotted blue) of the uptrend channel. The bearish breakout is probably indicating the end of the larger bullish momentum (wave A blue).
The GBP/USD is moving lower as part of a wave B (blue) and price is expected to use the Fibonacci levels of wave B vs A as a potential support and bouncing spot. A break below the 100% Fib invalidates the bullish ABC zigzag.
The GBP/USD is expected to build an ABC zigzag wave pattern back to the Fibonacci levels of wave B vs A which in turn could act as a support zone. Price could build an expanded WXY correction after completing the ABC within wave B (blue). A bullish breakout above the resistance trend line (red) indicates more upside.
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