EUR/GBP breaks below 0.8800 handle

   •  Extends post-BOE retracement for the third consecutive session.
   •  Inching back closer to 200-DMA important support. 

A fresh wave of selling pressure around the shared currency dragged the EUR/GBP cross back below the 0.8800 handle on Tuesday. 

The cross traded with a bearish bias for the third consecutive session and has now reversed majority (nearly 150-pips) of a dovish BOE rate hike-led up-move to the 0.8940 region. 

The British Pound's relative outperformance against its European counterpart could also be attributed to some renewed optimism over the Brexit negotiations, albeit now seems to be losing steam. 

Meanwhile, today's downbeat BRC retail sales data from the UK largely negated upbeat Halifax HPI print, while a general USD demand prompted some profit taking around the GBP/USD major and might now contributing towards limiting deeper losses, at least for the time being.

It would now be interesting to see if the post-BOE pull-back turns out to be a buying opportunity or could get extended towards a possible retest of the very important 200-day SMA support amid absent fundamental drivers.

Technical levels to watch

A follow-through selling pressure has the potential to continue dragging the cross towards 0.8780 intermediate support ahead of the 0.8765-60 region (200-day SMA). On the upside, 0.8820 level now seems to have emerged as immediate resistance, above which a bout of short-covering could lift the cross back towards 0.8860 level en-route the 0.8900 handle.