- The euro declined against the British pound as most UK economic indicators suggested momentum has picked up since the election.
- However, concerns over Britain’s trade talks with the European Union limited the upside in the British currency.
- Investors now await Bank of England Governor Mark Carney's speech at the British Parliament, explaining how monetary policy could improve the economy of the country.
- EUR/GBP is trading 0.1 percent down at 0.8435, having hit a low 0.8431 earlier, its lowest since February 3.
- Technical indicators are bearish: RSI weak at 44.38, MACD supports downside and Stochs are biased lower.
- Immediate resistance is located at 0.8467 (7-EMA), a break above could take it near 0.8473 (20-EMA).
- On the downside, support is seen at 0.8420, a break below could drag it till 0.8412.
Recommendation: Good to sell on rallies around 0.8444, with stop loss of 0.8451 and target price of 0.8420.
