4 hour

The GBP/USD bullish bounce at support (blue) has created a new bullish breakout above the resistance trend lines (dotted red). This could be part of a wave 5 (green) pattern that could create one more higher high in this uptrend. A break below the support zone could indicate the end of the wave 5 and the bigger correction in wave Y (pink).

1 hour

The GBP/USD breakout could have completed a potential wave 3 (grey) and price could be building a bearish retracement within wave 4 (grey). The Fibonacci levels of wave 4 could act as potential support levels. A break below the 61.8% Fib however makes this wave pattern unlikely whereas a break above the resistance (red) could see continuation of wave 5 (green).

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