The GBP/USD made a bearish breakout below the support trend line (blue), which is indicating the potential end of a wave 4 (purple) and a bearish continuation within waves 5.
The GBP/USD remains in a downtrend and the bullish price action seems to be a pullback rather than a reversal.
The GBP/USD bearish channel could have completed a wave 3 (blue), although price can extend the 3rd wave if price breaks below the support trend line. A pullback could be part of a wave 4 (blue) and bounce at the Fibonacci levels of wave 4 vs 3. The 5 wave pattern could finish a potential wave 1 of wave 5 rather than the wave 5. A break above the 38.2-50% Fibonacci retracement level of wave 4 could indicate that 5 waves have already been completed at the recent low.
