GBP/USD risk reversals decline, bearish reversal on the cards?

• GBP/USD - bearish sentiment strengthens in the options market.
• Adds credence to yesterday's gravestone doji-like candle.

Risk reversals

GBP/USD one-month 25 delta risk reversals fell to a 7-week low of -0.775; the lowest level since Oct. 10. It indicates increased demand for the GBP puts.

The bearish sentiment in the options market gelled well with the yesterday's gravestone doji candle, which is a bearish reversal pattern, although traders usually await confirmation, i.e. a negative follow-through on the following day.

The decline in the risk reversals indicates a negative follow-through could be in the offing today.