EUR/GBP tumbles to lows, around 0.8725 region

   •  Stronger UK services PMI revive BoE rate hike hopes and prompts aggressive selling.
   •  Some fresh EUR weakness further contributed to the pair’s sharp intraday slump.

The EUR/GBP cross remained heavily offered through the mid-European session and tumbled to fresh session lows in the last hour.

After yesterday's goodish up-move, the cross came under some intense selling pressure following the release of yet another upbeat UK PMI print, which revived hopes for an eventual BoE rate hike move in August. 

Meanwhile, the optimism over the latest Italian political development now seems to have faded, with some renewed EUR weakness further collaborating to pair's slump to the 0.8730-25 region or multi-day lows.

Looking at the technical picture, the cross remains within a well-established descending trend-channel, held over the past one-month or so. Hence, it would be prudent to wait for a decisive break through the mentioned channel before traders start positioning for the next leg of directional move. 

Technical levels to watch

The descending trend-channel support, currently near the 0.8700-0.8690 region, might continue to protect the immediate downside, which if broken might turn the cross vulnerable to slide back towards 0.8660 intermediate support en-route its next major support near the 0.8635-30 region.

On the flip side, 0.8755-60 area now seems to act as an immediate hurdle and is followed by the 0.8790-0.8800 strong barrier, coinciding with the trend-channel resistance, above which the pair is likely to aim back towards challenging the 0.8840 supply zone.