Sterling retreats as the greenback rallies across the board on upbeat inflation. The pair has met stiff selling pressure at the supply zone (1.4200) on the daily chart.
A combination of profit-taking and surging interest for the US dollar could trigger a deep correction. An RSI divergence suggests a loss in the upward momentum, and when this happens in the proximity of a major resistance may foreshadow a reversal.
1.4010 then 1.3890 are the next support levels if buyers start to dump their stakes.
