The pair has evidenced steep slumps about 1.70% or 250 pips exactly within 1 week.
So, no panic for bears, even if we may see some abrupt bounces as major trend seems to be strongly bearish in long term, below computations and table showing risk reversals would imply that OTC market sentiments are well positioned with hedging arrangements to mitigate downside risks.
Technically, while plotting both daily and monthly charts we have encountered with enough bearish swings to break the base of the falling wedge formation with mammoth volumes show the tendency to confer trend line.
However, the cable's IVs of ATM contracts are still perceived to be least IVs, it is featured as the one of the top 3 currency crosses to perceive the least IVs within next 1w-1m time frame among G7 space (at around 8-8.5%):
While GBPUSD Spot FX is at 1.4673,
1% OTM put (strike at 1.4850) = 8.11%
1% OTM call (strike at 1.5150) = 8.09%, thereby no much disparity exists.
Thus, the risk reversals of ATM contracts of 1-month maturities have no significant disparities between at the money and out of the money instruments (compare delta risk reversal with above computation of OTM instruments).
Hence, pondering over the breakout of falling wedge base, the sliding downwards sharply, and FX OTC market sentiments for this pair we recommend shorting near month futures for target at 1.4615 with a stop loss at 1.4805, thereby observed handsome risk reward ratio.
