EUR/GBP tumbles to lows, farther below 0.8800 handle

The EUR/GBP cross ran through some fresh offers near mid-0.8800s and reversed around 50% of previous session's strong up-move back closer to yearly tops.

Currently trading around 0.8775-80 region, testing session lows, the cross came under intense selling pressure after BOE Chief Economist Andy Haldane reignited expectations for a relatively sooner rate-hike action. The comments contradicted to the BOE Governor Mark Carney's comments on Tuesday, that a rate-hike is unlikely to come anytime soon, but triggered a short-covering bounce around GBP crosses.

Meanwhile, the UK Queen's Mansion House speech had little in terms of anything controversial and remained supportive of the strong bid tone surrounding the British Pound. 

However, a modest recovery witnessed around the EUR/USD major seems to be extending some support and collaborating towards limiting any further downslide, at least for the time being.

Technical levels to watch

Immediate support is pegged near 0.8765-60 region, below which the slide could get extended towards 0.8730 horizontal support en-route the 0.8700 handle. On the upside, any up-move back above the 0.8800 mark now seems to confront resistance near 0.8815-20 region, above which the cross is likely to aim back towards retesting yearly tops resistance near 0.8850-60 region.