So, I came across this reaction as an example of E2 elimination.
Our teacher told us that this is what we call E2' reaction, as in, the $\ce{OH^-}$ takes the terminal $\ce{H^+}$, followed by resonance and then removal of $\ce{Cl^-}$.
This didn't really make sense to me at first by how he has taught us the mechanism for E2, which is through concerted single step $\beta$-elimination, while this one seems like $1,4$-elimination, and at least three steps by the path he told us.
I tried to make it make sense by the following pathway:
Question: Is this correct? What exactly is happening here? This doesn't seem like resonance to me as that doesn't involve partial charges, I think. Does this happen for even longer chains, like $1,6$ or $1,8$ eliminations?