EUR/GBP flirting with 4-week lows after upbeat UK GDP

The EUR/GBP cross maintained its offered tone for the fourth staight session and inched closer to monthly lows following the release of Q4 UK growth numbers.

Currently trading around 0.8475-70 band, testing session lows, the cross remained under some selling pressure after UK GDP came-in to show a quarterly growth of 0.6% as compared to 0.6% growth recorded in the previous quarter. 

The reading was better-than-expected and provided an additional boost to the British Pound, which remains underpinned by yesterday's statement from UK Prime Minister Theresa May, agreeing to publish Brexit plan in a formal 'White Paper' document to allow parliament to scrutinize it. 

Meanwhile, a modest offered tone around the shared currency also collaborated to the pair's downslide to the lowest level since Jan. 3.

With UK GDP out of the way, focus now shifts to publication of legislation seeking UK Parliament's approval to begin formal process for ending Britain's membership with the European Union.

Technical levels to watch

A follow through selling pressure below 0.8450 level (Jan. 3 low) is likely to accelerate the slide towards 0.8400 round figure mark below which the cross is likely to head towards testing 0.8300 handle with some intermediate support near 0.8330 level.

On the upside, any recovery move above 0.8500 handle might now confront resistance at 50-day SMA near 0.8525 region, which if cleared has the potential to lift the cross towards 0.8570-80 resistance (yesterday's high).