The GBP/USD spike is probably an impulsive push higher and therefore labelled as a wave 3 (blue). A bearish retracement within wave 4 (blue) is now likely to take place. Price can either make a pullback towards the Fibonacci retracement levels of wave 4 (blue) or build a triangle pattern (purple arrows). The wave 4 (blue) outlook remains likely as long as the price stays above the 50% Fib (red x).
The GBP/USD could be building an ABC (green) pattern in a wave 4 (blue) unless price breaks above the 1.35 resistance level (dotted orange), which could indicate an immediate uptrend continuation. A retracement or triangle (purple arrows) could simply be a pause within the uptrend.
