If its a rounding bottom pattern then it has to be a breakout zone or a false breakout zone. Because the neckline of a rounding top is always a resistance which would give bullish move upon breakout. If it fails then it would be a false breakout.
Please share your view on this.
Think of the yellow box /neckline as the fighting arena between bulls n bears. All 4 possibilities are valid(2 that yo mentioned about breakouts and two about the reversals)