The GBP/USD remains in a downtrend channel but the bearish momentum is weakening. Price is in a difficult spot because both the bullish correction and downtrend continuation are equally likely. That said, the wave count is favouring a larger corrective zone back towards the Fibs of wave 2 (pink).
The GBP/USD seems to be building a bearish ABC correction (green), which has respected and stopped at the 61.8% Fibonacci level of wave 2. This wave pattern is invalidated if price breaks below the 100% Fib. Price could move up higher as part of a wave 3 or wave C if price breaks above the resistance trend line (orange).
