The GBP/USD is testing the 88.6% Fibonacci retracement level of wave 2 (purple) versus wave 1. The resistance level is a key decision zone for a bearish bounce or bullish breakout.
The GBP/USD bullish break above the 100% Fib invalidates the wave 2 (purple) pattern whereas a bearish bounce could see price confirm he potential wave 3 (purple) pattern, although a break below the support trend lines (blue) is needed for more confirmation.
The GBP/USD is moving sideways and building a consolidation zone at the 88.6% Fibonacci retracement level. The trend lines are key levels to keep an eye on for a bullish or bearish breakout.