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Pound sterling's mini rally against the euro is intact.
The pound to euro exchange rate (GBP/EUR) jumps to 1.14 mid-morning of mid-week, a 0.34% daily gain that is consistent with the uptrend that has been in place since November.
The rise off the ascending short-term trendline means a test of the 50-day exponential moving average at 1.1418 is in store either later today or later in the week.
This level coincides with the descending upper-bound of the selloff that has been in place since June, meaning it's a decent zone of resistance.
GBP bulls will be looking to crack this ceiling to stabilise the medium-term outlook, which would imply that the 1.1285 low of November 14 is the low point of the year.
Should resistance break, then a rise to 1.1450 is on the cards; this level was the horizontal graphical support from July through to August.
Note that it's too soon to say the bigger-picture GBP selloff is over, with many a seasoned analyst warning that the pound faces continued headwinds and 2026 will be another difficult year.
We nevertheless appear to be witnessing a counter-trend move that stabilises the selloff and allows some tactical opportunities for euro buyers.
There's still a risk that the current rise eventually peters out and sterling turns lower at some point in Q1 of next year, ensuring the big target at 1.11 (or 0.90 in EUR/GBP) comes into play.