The GBP/USD is showing a strong bullish momentum after breaking the resistance trend line (dotted orange) of the downtrend channel. Price is expected to move up towards the Fibonacci retracement levels of wave Y vs W.
If the GBP/USD is indeed in a wave A (blue), then price will make a bearish bounce at the Fibonacci retracement levels and continue for a lower low for a wave B.
The GBP/USD is probably building a wave 345 (green) pattern in wave A (blue). A break above the resistance trend line (red) could see price make a new high as part of wave 5 (green) of wave A (blue) whereas a break below the support trend line (blue) and 50% Fib of wave 4 vs 3 could see price make a wave B.
For more daily wave analysis and updates, sign-up up to our ecs.LIVE channel.