British Pound to Euro Exchange Rate Forecast: 1.22-1.25 Near-Term, Longer-Term Falls to 1.12 Seen
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A fundamental and technical note on the GBP/EUR conversion's outlook over the coming five days and why JP Morgan are forecasting 1.12 longer-term.
The Pound to Euro exchange rate is today trading at 1.1963 - well within the ranges witnessed in the week prior.
In fact, the pair is now in close proximity to the level it started July at - 1.1994 - a strong recovery off the monthly low at 1.1585.
Turning the equation around, the Euro to Pound Sterling exchange rate (EUR/GBP) is today at 0.8360.
While the currency pair may be within its recent ranges, there are certainly levels that one must be aware of as this is a market that could well touch fresh post-Brexit highs over coming days.
The first level to watch is the psychologically significant €1.20 - the pair has closed above here once in July (20th July) - suggesting that there are few buyers of Sterling above here.
A close and hold of 1.20 would be a sign that perhaps the nascent July recovery is about to extend.
It is therefore likely to break either higher or lower in the week ahead.
If the exchange rate moves above 1.2100 that will probably confirm an upside break and lead to the pair extending its rally to 1.2200.
Alternatively, a move below 1.1850 level would confirm a downside break with an initial target at 1.1800, followed by 1.1700 and 1.1600.
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