FxWirePro: EUR/GBP slumps over 1-week trough, good to sell on rallies

• The euro plunged to an over 1-week trough against the British pound as investors continued to digest yesterday's economic growth data.
• British economic growth showed no change in the fourth quarter despite market expectations that it would be slower, reassuring investors that the Bank of England was unlikely to pursue a looser monetary policy.
• Preliminary data for fourth-quarter gross domestic product showed the UK economy grew 1.1 percent year-on-year, the same as in the previous quarter.
• However, concerns over Britain’s trade talks with the European Union capped the upside in the British currency.
• EUR/GBP is trading 0.1 percent down at 0.8416, having hit a low of 0.8413 earlier, its lowest since February 3.
• Technical indicators are bearish: RSI weak at 42.28, MACD supports downside and Stochs are biased lower.
• Immediate resistance is located at 0.8440, a break above could take it near 0.8453.
• On the downside, support is seen at 0.8406, a break below could drag it till 0.8385.

Recommendation: Good to sell on rallies around 0.8424, with stop loss of 0.8431 and target price of 0.8406.