EUR/GBP bounces off the base of its longer-term channel at 0.8376. As Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, notes, the pair is set to challenge initial resistance at the April 2021 low of 0.8471.

EUR/GBP to target 0.8239 on a break below 0.8376

“EUR/GBP recently sold off into new lows for the year of 0.8377 but this has not been confirmed by the daily RSI. So far the cross is holding the base of the 2021 down channel at 0.8376. This should hold the initial test. Below here attention should revert to the 0.8239 2019 low and the 200-month ma lies at 0.8167.”

“Initial resistance is 0.8471, the April 2021 low.”

“Only a move above 0.8596 (5th November high) will signal scope to revisit the 0.8659/73 highs since May.”