EUR/GBP jumps to 0.8450 after BOE cuts rate to record low

The EUR/GBP cross recovered sharply from weekly lows and jumped to session high after BOE MPC decided to slash its benchmark interest rates by 25 bps. 

The decision was on expected lines but the British Pound took a tumble additional QE to the tune of £70 billion, comprising of £60bn in government purchases and £10bn to corporate. 

Next in focus would be BOE presser, where market participants will closely scrutinize Governor Mark Carney's comments in order to seek clues over central bank's future monetary policy stance and possibilities of further easing in the near-future. 

Technical levels to watch

On a sustained break below 0.8300 round figure mark support, the cross seems to immediately head towards July swing lows support near 0.8250 region. A break below 0.8250 multi-week lows support would open room for continuation of the pair's corrective move towards 50-day SMA support near 0.8210 region.

Meanwhile, recovery move above 0.8400 handle is likely to get extended towards recent closing highs resistance near 0.8470 region. A convincing break above 0.8470 resistance would now assist the pair to reclaim 0.8500 handle and head towards its next major resistance near 0.8580 area.