The GBP/USD made a bullish bounce as expected despite the presence of a downtrend channel. Price is now carefully breaking above a resistance trend line (dotted orange).
A break below the support trend line (green) would indicate a restart of the downtrend whereas a break above the resistance of the downtrend channel (red) could indicate a correction within the wave 2 (pink). The alternative is that price is now building a wave 4 correction.
The GBP/USD seems to be building a bullish ABC zigzag (blue) in a bullish channel, which is now challenging the previous top at around 1.32. A break below support could indicate the completion of a wave W correction (purple).