GBP/USD is currently sidelined at 1.2218, having dropped 0.59% on Tuesday.

The pair has found acceptance below the 50-day moving average (MA) for the first time since Sept. 8. The MA is currently located at 1.2253.

More importantly, Tuesday's drop confirmed a bear flag breakdown on the 4-hour chart. The breakdown indicates the sell-off from recent highs above 1.25 has resumed and the pair could fall to 1.21 (target as per the measured move method).

Supporting the bearish case are the descending 5- and 10-day moving averages (MAs) and the below 50-reading on the relative strength index.