the GBP/USD seems to have completed a 5 wave (orange) pattern in wave A (green) and the Cable could now be ready for a bearish correction within wave B (green). The 50% Fibonacci retracement level is the expected reversal spot for a bullish continuation in wave C of wave W (blue).
The GBP/USD is building a bullish channel and an immediate break above 1.30 could indicate that a bearish correction is not likely to take place. A bullish break could see price move up to 1.3250. But for the moment though a bullish bounce could take place at the 23.6% Fib for a short rally and then a wave down.
The GBP/USD could struggle to break above the Fibonacci retracement levels of wave B vs A (orange). A bearish bounce at the 61.8% Fib level seems the most likely at the moment and could fall down to the 50% Fib of wave B vs A, which could be a bullish bouncing spot.
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