The GBP/USD bounced at the top of the bear flag chart pattern and 23.6% Fibonacci retracement level. The bearish bounce however needs to break below the bear flag pattern before it becomes more likely that the wave 4 (purple) correction has been completed and a wave 5 can start. The 38.2% and 50% Fibonacci levels of wave 4 could act as resistance but a break above the 50% makes a wave 4 less likely.
The GBP/USD could be in a wave 4 but a break below the 61.8% Fib makes this wave count unlikely and a larger bearish trend could start. A bullish bounce could see price test the Fibonacci levels.
Origin: Admiral Markets