EUR/GBP rebounds from post-BoE fall to 9-month lows, retakes 0.87 handle

   •  BoE MPC votes 7-2 to keep rates unchanged.
   •  Unexpected dissenters prompt aggressive GBP buying.
   •  Bears take a breather amid oversold conditions.

The EUR/GBP cross changed course from an intraday high level of 0.8742 and tumbled below the 0.8700 handle post-BoE announcement.

Against the backdrop of recent optimism over the Brexit transition deal, the British Pound got an additional boost 2 of the 9 BoE MPC members, McCafferty and Saunders, dissented from keeping interest rates on hold. 

Unexpected dissenters surprised market participants and prompted some aggressive GBP buying, dragging the cross to its lowest level since June 2017. 

Apart from the knee-jerk reaction, the cross lacked any follow-through selling and quickly rebounded around 35-pips from an intraday low level of 0.8667 and is currently trading back above the 0.8700 handle. 

Despite a goodish recovery, the cross, so far, has held in negative territory for the seventh consecutive session (11 out of the previous 12) as investors now look forward to the BoE Deputy Governor David Ramsden's scheduled speech later during the NY trading session.

Technical levels to watch

Weakness back below 0.8685 level might now turn the cross vulnerable to slide below swing lows and head towards testing its next support near the 0.8650-40 region. On the upside, any meaningful recovery attempts might now confront immediate resistance near the 0.8735-40 region, above which a bout of short-covering could lift the cross back closer to the 0.8800 handle.