The GBP/USD is hesitating with making a breakout in either direction. Price could continue with the downtrend but a break below the key support zone remains key.
A break above the resistance zone could indicate a larger bullish corrective reversal. The breakout direction will decide whether price is still in the wave 5 (purple) of wave 1 (pink) or whether the wave 2 (pink) correction has finally started.
The GBP/USD seems to be building an expanded correction at the moment as price failed to break below the 78.6% Fibonacci level of wave X (blue). Price will need to break below the support trend line (blue) before a larger bearish breakout could occur whereas a break above the resistance trend lines could indicate the continuation of the wave Y (blue).
