The EUR/GBP has broken below its December 2019 low today to trade at its lowest levels since July 2017. Rabobank economists see the pound remaining moderately better positioned against the euro in the coming months as the crisis deepens and Russia’s pariah status persists.
The first level to watch is 0.8270
“Concerns about Germany’s energy security increase the vulnerability of the EUR against the GBP. This is likely to slow any recovery in EUR/GBP and open up downside potential in the near term.”
“On the downside, the first level to watch is the bearish channel bottom around 0.8270.”
“We would expect considerable support in the 0.8250-0.8200 area as a break below would leave the British pound targeting pre-2016 Brexit referendum levels.”
Source: Fx Street
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