the GBP/USD is building a corrective triangle chart pattern after a strong bearish momentum and within a larger downtrend. A break below the consolidation zone could indicate a downtrend continuation.
The GBP/USD bearish breakout is aiming for the round psychological level of 1.20, which is a support level and could act as a potential bouncing spot. The lower low would most likely be part of a wave 3 (green). Any bullish price action is likely to be a retracement and run into resistance.
The GBP/USD needs to break below the support trend line (blue) before a bearish breakout and continuation can take place. A smaller 5 wave pattern (grey) is expected to take place within waves 5 (green/dark red/orange) of wave 3 (dark green). A bearish breakout is aiming for the Fibonacci levels.