Above is the 4-hour chart of GBP/USD. The currency has been moving up along the red up-trend line for a month. Therefore, we can expect it to keep on being a strong support for GBP, which is at around 1.605.
Also, I applied fibonacci projection on the breakout of pennant. Basically, the surge fits the fibs level. So the next level would be at around 1.607 together with the red up-trend line. We can anticipate consolidation for 2-3 candles.
After GBP boosted to the top, the candle showed a big bearish rejection. This could be a signal about topping of the currency.
The few moving averages converge together now. Exchange rate would have a big fluctuation, either upwards or downwards. We have to see whether the red up-trend line could successfully support it.
If YES, GBP will re-test the last high, and possibly heading up to 100% fibs level.
If NO, next support given by the green down-trend line will be at around 1.59.
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