After hitting the upper boundary of a short-term channel and a trend-line at 1.4370, the Sterling began its decline towards the 1.43 mark.
This bearish momentum was caused primarily by sluggish US average earnings report. It caused a fall of 50 pips as a result of which the Pound breached the 55-hour SMA. However, it remained at this line during the Asia session, demonstrating that bulls are still trying to regain their lost positions.
If this moving average is breached, the next target should be the weekly R2 at 1.4424. On the other hand, the pair is supported by the 100-hour SMA near 1.4270. This line is likely to restrict a deeper fall down to the weekly PP and the 200-hour SMA at 1.42 for some time.
The British CPI at 0830GMT is likely to guide the market sentiment for several hours.
