The GBP to EUR exchange rate starts the new month on a negative footing, however our studies and work conducted by notable currency analysts suggest it is too early to say the month-long recovery is dead.
Shudders have reverberated through the GBP exchange rate complex at the start of the new month with sterling suddenly looking incredibly fragile after what was a stellar May.
However, those readers wishing to get more euro’s for their pound may be best served by waiting as analysts are generally concurring that GBP/EUR has higher to go in the short-term, despite a temporary pull-back slowing the pair’s ascent in recent days.
Currently buying 1.30 euros, sterling is forecast to reach the 1.35s in coming weeks by two notable analysts, whilst we see a high probability of a move up to 1.33 on the horizon too.
Over recent sessions the pound has fallen owing to a shift towards Leave in the polls (see more below) we must remain aware that the pair has rallied 6.4% since bottoming at the beginning of April and therefore probably still has more to give.
“Indeed, since it bottomed out against the euro at 1.235 (at the beginning of April) the UK currency has rallied by 6.4% and the overall impression is that it could still have further to go before this move reaches a conclusion,” says analyst Bill McNamara with Charles Stanley.
McNamara cites resistance at 1.3500 as a potential target:
“The next area of possible resistance now appears to be in the region of 1.35 (and it would take a drop back through 1.29 to negate the bull case).”
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