The better-than-expected UK CPI in June has lifted the sterling across the board.
Price action has seen strong support above 1.3730, a critical demand zone on the daily chart. After the initial rally, the pair has bounced off the 61.8% Fibonacci retracement level (1.3800) while the RSI recovered back to the neutral area.
Following a previous failed attempt, a bullish breakout above the supply zone around 1.3920 could boost confidence on the buy-side and trigger a reversal.
Then the psychological level of 1.4000 would be the next target.
