EUR/GBP has today broken below its December 2019 low to trade at its lowest levels since July 2017. Economists at Rabobank see the pound as remaining moderately better positioned vs. the euro in the coming months as long as the crisis deepens and Russia’s pariah status persists.
First level to watch is 0.8270
“Worries about Germany’s energy security increase the vulnerability of the EUR vs. the GBP. This will likely slow any recovery in EUR/GBP and opens downside potential in the near-term.”
“On the downside, the first level to watch is the bottom of the bear channel at around 0.8270.”
“We would expect considerable support in the 0.8250-0.8200 area given that a break below would leave GBP eyeing up pre-2016 Brexit referendum levels.”