Our Daily wave count suggests that British Pound has entered into a corrective wave 4, which up to now is developing to be a zigzag. The most important level to watch here is 1.400 which should not be broken in case GBP/USD is to reach a higher point as suggested by our current and past analysis.
Trading 4th waves is always tiring due to many false signals and time it may take to complete, however up to now British Pound has created a nice picture which gives us good risk-reward. The A-B-C of the lesser degree (B of 4th wave) retraced 76.4% of the advance of A, with its (C) respecting 100% Fibo Extension of (A).
While this is one of the scenarios possible for GBP/USD, it is the most probable one as long as 1.400 is not broken. Look to enter long in retracements of this uptrend, with targets as shown in the chart below in 76.4 5, 100%, and 161% extensions respectively.
The trendline of the triangle, once support now has turned resistance and might cause the rally to slow down in order to give us that retracement and allow us to go long again in GBP/USD as we have done in the previous days: