The GBP/USD currency pair made a bullish bounce and is now retesting the resistance trend line (red), which is a decision zone for a bullish breakout or a bearish bounce. The price reaction will depend on which candlestick patterns develop at the resistance line. A bullish break could see the price move higher to the test the Fibonacci levels, whereas a break below the support trend line (blue) could indicate a larger bearish breakout.
The GBP/USD currency pair is probably building an ABC (blue) retracement back to the Fibonacci retracement levels of wave 2 vs 1. This wave 2 (purple) is invalidated when the price breaks above the 100% Fibonacci level.
Origin: Admiral Markets