You could try the following code:-
Private Sub Worksheet_Change(ByVal Target As Range)
If Target.Count > 1 Then Exit Sub
If Target.Value = vbNullString Then Exit Sub
If Intersect(Target, Columns("E:E")) Is Nothing Then Exit Sub
Application.ScreenUpdating = False
If Target.Value = "Cancelled" Then
Target.EntireRow.Copy Sheet2.Range("A" & Rows.Count).End(3)(2)
Application.CutCopyMode = False
Application.ScreenUpdating = True
The code is a Worksheet_Change event and needs to be placed in the Worksheet (Sheet1) module. Once "Cancelled" is typed into a cell in Column E of Sheet1 and you click away (or press Enter or down arrow), the relevant row of data will be transferred to Sheet2 and the row will be deleted from Sheet1.
To implement the code, right click on the Sheet1 tab and select "View Code" from the menu that appears. In the big white field that then appears, paste the above code.
Test the code in a copy of your work book first.
I hope that this helps.