The current GBPUSD structure hints to a forthcoming bullish zigzag that is represented by cycle waves a-b and c.
Wave a was completed with a 5-wave impulse move, whereas wave b is currently under construction.
The corrective cycle wave, wave b, might as well just be a zigzag pattern consisting of primary sub-waves Ⓐ-Ⓑ and Ⓒ.
Should this scenario prevail, wave Ⓑ of the zigzag could end near 1.338. At that level, wave Ⓑ will be at the 76.4% Fibonacci retracement of impulse wave Ⓐ.
This could be followed by a decline near 1.2571, where cycle wave b will be at the 61.8% Fibonacci retracement of wave a.
Elliot wave theory allows an alternative view of the current structure. This view sees wave Ⓑ of the corrective (A)-(B)-(C) zigzag completed.
This would indicate that primary impulse Ⓒ is already infolding in an impulsive manner.
The alternative scenario assumes that intermediate wave (1) of the final bearish leg is fully completed. Wave (2) however, is still under formation.
Market participants could push higher to complete wave (2) by taking out some breakeven stops. And then, once a clear resistance test is seen, the decline could continue to the aforementioned target of 1.2571.