In between, the pair has also made an intermediary channel with a range of 1.4570 and 1.4350 (220 pips) within which it has acted as resistance and support several times in the recent past (see oval shaped circled areas).
Both oscillators ( and ) converging downwards right from the overbought territory and initiating any fresh longs are not at all advisable for both intraday traders and on delivery basis (see intraday charts).
Stochastic: Although the curves approaching oversold region but no traces oversold situation as the slow curve noises with %D line cross over around 20 levels (current %D line flashes at 14.1889) which means that it alarms bears trying to take over the rallies.
RSI: Current daily (14) converging downwards 50.6900 levels is a signal for momentum.
Considerably, downtrend seems to be intact as it has remained well below 21DMA and 21DMA crossing over 7DMA is also a signal.
Hence, we would foresee GBP on weaker side ahead of today's CPI outcome even though it is likely to show a slight jump at 0.3%. So, with spot FX at 1.4422 the smart trade idea would be use the rallies for better entry points to short for targets upto 1.4343 and upon breach of this level 1.4230 is also quite feasible keeping the stop loss at 1.4498 as we mentioned above (the resistance).