GBP/USD: Testing Deep 88.6% Fibonacci Retracement Level

The GBP/USD downtrend continuation could be part of wave 5 (pink) of wave5 (purple). A break above the resistance zone (red) however indicates a larger bullish correction.

The GBP/USD could be building a bullish retracement within wave 2 (purple) as long as price stays below the previous top and 100% Fibonaccilevel. A break below the support (blue) trend line confirms the potential bearish breakout.