EUR/GBP tumbles to weekly lows on hawkish BOE vote

Having failed to build on to its momentum beyond the 0.88 handle, the EUR/GBP cross turned sharply lower and tumbled to weekly lows near 0.8730-20 region following the BOE announcement.

Spot ran through fresh offers and accelerated the downslide after the minutes of the BOE's June meeting revealed MPC voted 5-3 to leave interest rates unchanged at record low level of 0.25%, suggesting lower tolerance for near-term inflation overshoot. The hawkish tilt lifted the British Pound across the board and weighed heavily on the EUR/GBP cross. 

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Adding to this, a fresh wave of selling pressure around the EUR/USD major, in wake of the hawkish Fed outlook, also collaborated to the pair's sharp downslide, farther below yearly tops touched at the beginning of this week.  

Meanwhile, market now seems to look past the recent disappointing UK macro data, which to some extend raised concerns over future economic growth of the British economy amid prevailing political uncertainty and the impending Brexit negotiations, with BoE headlines acting as an exclusive driver of the pair's sharp slide over the past hour.

Technical levels to watch

A follow through selling pressure has the potential to continued dragging the cross further below the 0.8700 handle towards its next support near 0.8655-50 region.

On the upside, any recovery move now seems to confront immediate resistance near 0.8755-60 zone, above which a bout of short-covering could lift the cross back towards the 0.8800 handle.