EUR/GBP reverses sharply from multi-month highs after Carney

The pound jumped after Bank of England Governor, Mark Carney, mentioned that the removal of some of the stimulus would be discussed and needed if the economy improves. 

BoE’s Carney: MPC has been clear that its tolerance for above-target inflation is limited

EUR/GBP started to slide from 0.8860 after reports mentioned that yesterday’s comments from Draghi were misunderstood. Then it plummeted to 0.8770 following Carney speech. 

The dropped in a few hours from the highest since November, to the lowest since Friday, found support at the 0.8770 area, where the 20-day moving average stands.   

Technical levels 

To the upside, resistance now could be seen at 0.8805 (Jun 23 & 26 high), 0.8840 (Jun 21 high) and 0.8875/80 (daily high). On the downside, support now might be located at 0.8770 (daily low / 20-hour moving average) and 0.8735 (Jun 19 low).