EUR/GBP tumbles below 0.8700 after BOE

The EUR/GBP cross reversed early gains and tumbled to session low, below the 0.8700 handle after the BoE announcement.

Spot ran through some fresh offers after BoE left interest rates at record low level of 0.25% and also kept its Asset Purchase Facility unchanged at £435 billion. 

Meanwhile, the accompanying minutes revealed MPC votes 8-1 to keep rates unchanged, which was seen as slightly less dovish signal and provided a minor boost to the British Pound.  

Moreover, a mildly offered tone around the EUR/USD major also collaborated towards the offered tone surrounding the EUR/GBP cross.

Technical levels to watch

A follow through selling pressure below 0.8700 round figure mark might continue dragging the cross further towards retesting an important support near 0.8670-60 region (yesterday's lows). A follow through selling pressure would turn the cross vulnerable to extend the corrective slide further towards the very important 200-day SMA support near 0.8535 region.

Meanwhile, immediate resistance is now pegged near 0.8750 level, followed by 0.8775 strong hurdle, which if cleared decisively is likely to accelerate the up-move beyond the 0.8800 handle towards yearly highs resistance near mid-0.8800s (Jan. 16 high). Momentum above yearly highs now seems to assist the pair towards reclaiming the 0.8900 handle.