The GBPUSD formation hints to a 5-wave impulse pattern consisting of cycle degree waves I-II-III-IV-V.
Looking at the 4H chart, we can assume that bears could push prices lower to complete intermediate wave (A) as part of the primary correction.
The corrective pattern could see prices accelerating higher to complete wave (B) and then slide lower. The lowest area prices could reach without invalidating this scenario, is the top of primary wave ➀ at 1.2954.
A closer look shows that the corrective wave ④ could be offering an alternative pattern as a nearly completed zigzag. This bearish scenario would have the corrective structure consisting of intermediate sub-waves (A)-(B)-(C).
In that case, a slight decline near 1.301 could be possible, where primary wave ④ will be at 78.6% of the previous bullish impulse ③.
The market could then rise near 1.352, repeating the 78.6% of the same bullish primary impulse ③. That being said, it would be wave ③ determining the magnitude of waves ④ and ⑤.
