EUR/GBP extends post-BOE corrective slide, comes down to 0.8840
• Retreats nearly 100-pips from post-BoE swing highs.
• Final EZ PMI prints further dented already weaker sentiment.
The EUR/GBP cross remained under some selling pressure for the second consecutive session and extended its post-BoE retracement from levels beyond the 0.8900 handle.
Currently trading around 0.8840 level, testing session lows, the cross has now reversed over 50% of last Thursday's strong up-move led by dovish BoE rate hike move. In the absence of any disheartening comments from the UK PM Theresa May, during her speech at the CBI conference in London, traders seemed prompted to lighten their bearish GBP bets.
• UK: Focus likely back to domestic policy - ANZ
Meanwhile, a modest downward revision of the EZ services PMI prints for October exerted some additional pressure on the already weaker shared currency and further collaborated to the pair's heavily offered tone at the start of a new trading week.
• Eurozone policy now has an extremely accommodative path - Westpac
Moving ahead, investors now look forward to the ECB President Mario Draghi's scheduled speech on Tuesday for some fresh impetus.
Technical levels to watch
A follow-through selling pressure has the potential to continue dragging the cross further towards 0.8820 intermediate support en-route the 0.8800 handle. On the upside, momentum back above 0.8875 level might continue to confront strong resistance near the 0.8900 handle, above which the cross is likely to aim towards testing its next hurdle near the 0.8950-55 region.