The GBP/USD finally made a breakout but the news around the Brexit process currently is and remains the main driver of price action. Price managed to push through the support zone which means that price could be in a downtrend as part of a wave 3 (blue).
The GBP/USD could be in a wave 3 but for this wave pattern to be confirmed, price needs to keep pushing lower towards deeper Fibonacci levels of wave 3 vs 1. The minimum expected target of a wave 3 is the 161.8% Fib target.
The GBP/USD made a retracement and bearish bounce at the 50% Fibonacci retracement level of wave 4 vs 3 (green) before price made a new low. For the moment it seems likely that price will either make a bearish continuation lower (orange arrow) or make a consolidation zone (grey arrows).
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