We anticipate in a process of completion of this pattern ( ) more dips are underway synthesizing with other indications.
Leading oscillators ( and ) indicate downward convergence with price slumps.
While the current spot FX is sliding below lagging indicator (10DMA) on that signifies these price dips to prevail further.
However, the cable's IVs of ATM contracts are still perceived to be the second least within next 1w-1m time frame among G7 space (at around 6-7%), you can observe implied volatilities from the diagram (please refer below link for implied nutshell):
While GBPUSD Spot FX is at 1.5002,
1% OTM put (strike at 1.4850) = 7.67%
1% OTM call (strike at 1.5150) = 7.10%, 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 range bounded trend but sliding slightly downwards, and FX OTC market sentiments for this pair we recommend shorting near month for target at 1.4950 with a stop loss at 1.5050, thereby observed risk reward ratio at 1:1.