GBP/USD is in a bearish consolidative mode around 1.3650.

GBP/USD Price Analysis: Teasing bear flag, with death cross in play ahead of Fed

GBP/USD is in a bearish consolidative mode around 1.3650.

Fed decision in focus for the next big move in the cable.

The pair charts a bear flag on the 4H chart amid oversold RSI.

GBP/USD is pressuring daily lows near mid-1.3600s, as the US dollar holds relatively firmer in early European trades amid rising Treasury yields and S&P 500 futures.

Markets have turned calm on positive news from China Evergrande while traders await the Fed decision for the next direction in prices. However, the US dollar is likely to remain in a win-win situation even though the Fed refrains from hinting at tapering, as China's risks continue to persist.

Looking at GBP/USD technically, the price is teasing a bear flag breakdown on the four-hourly sticks, with a sustained move below the rising trendline support at 1.3651 likely to confirm the bearish continuation pattern.

The downside breakout could open floors towards the 1.3600 round number, with a test of the pattern target measured at 1.3528 remaining well on the cards in the near term.

The Relative Strength Index (RSI) is peeking into the oversold territory, suggesting that there is some room left for GBP bears to flex their muscles.

Adding credence to further weakness, the 50-Simple Moving Average (SMA) has crossed the 200-SMA from above, validating a death cross on the said timeframe.