The GBP/USD is breaking below the support trend line of the bear flag chart pattern after bouncing at the 23.6% Fibonacci retracement level. The bearish breakout could indicate the restart of the downtrend and aim for a target zone at 1.30.
The GBP/USD still needs to break other support levels (blue) before a full bearish breakout could be expected. A break above the resistance trend line (orange) could indicate a larger correction towards the 38.2% Fibonacci level.
The GBP/USD is building a bearish channel. Price will need to break the bottom of the channel before an impulsive and bearish wave 3 could be expected and confirmed. A break above the channel invalidates the current wave pattern.
