The GBP/USD broke below the support trend line (dotted green) and important 1.3380-1.34 Fibonacci support zone. The bearish breakout makes a continuation lower more likely, especially if price bounces at the broken support that now could act as resistance.
A bearish continuation could see price move lower towards the Fibonacci targets of wave 5. For the moment the bears remain in strong control and that would not change unless price breaks above the resistance trend lines (orange/red).
The GBP/USD could be building a corrective pattern within wave 4 (green). A bearish bounce at the Fibonacci retracement levels of wave 4 (green) could start the wave 5 (green) but a break below the support trend line (blue) is needed as a confirmation. A break above the 61.8% Fibonacci level of wave 4 (green) invalidates the current wave pattern.
