FxWirePro: EUR/GBP capped below 50-DMA, focus on UK Q4 GDP

• EUR/GBP has broken major supports at 0.86 (major trendline) and 0.8521 (50-DMA).
   
• Intraday bias lower, the pair is on track to test 200-DMA at 0.8402.
   
• UK PM May will publish the bill to trigger Brexit, which will help provide further clarity on Brexit plan.
   
• Preliminary UK  Q4 GDP release will be in focus, with expectations that the UK economy is likely to have slowed its pace of expansion in Q4, predicted at 0.5% versus 0.6% previous.
   
• Technical analysis shows weakness on daily charts. RSI biased south and Stochs are deeply entrenched in oversold zone.
   
• Support levels - 0.8450 (Jan 3 low), 0.8402 (200-DMA), 0.8331 (Dec 15 low)
   
• Resistance levels - 0.85, 0.8520 (50-DMA), 0.8561 (5-DMA)
   

Recommendation: Good to sell rallies around 0.85, SL: 0.8565, TP: 0.8450/ 0.84/ 0.8335
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FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at 6.9757 (Neutral), while Hourly GBP Spot Index was at 117.071 (Highly bullish) at 0700 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.