The GBPUSD currency pair is building a potential bear flag chart pattern, which could be part of a wave 4 (blue) pattern as long as the price does not break above the bottom of wave 1, which is indicated by the red trend line. A break below the support (blue) of the bear flag could indicate a continuation towards the Fibonacci targets.
The GBPUSD currency pair could have made an ABC (green) pattern within wave 4 (blue), but the confirmation of that occurs when the price breaks through the support line (blue). A break above the resistance invalidates this wave pattern.
The GBPUSD currency pair made a bearish bounce at the 38.2% Fibonacci level when reviewing the daily chart. The price needs to break the support trend line (blue) before the completion of wave 4 (pink), and the start of wave 5 (pink) becomes more likely.
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