Pound euro exchange rate (GBP-EUR) in fresh fall on Tuesday

The pound sterling to euro exchange rate has recorded fresh falls on Tuesday morning with all-round British pound weakness taking the blame.

The pound to euro exchange rate (GBP to EUR) is trading 0.14 pct in the red having reached 1.1936 on Tuesday morning.

Sterling had initially recovered a little ground in Monday's morning trading session, however fresh buying interest in the EUR helped push the currency pair back to 1.1950 later on in the day. Tuesday's live coverage confirms the GBP is under all-round pressure and only events on Wednesday may offer a respite.

"With little to bolster sterling until later on in the week, trading at 1.1950 looks probable today," says Sasha Nugent at Caxton FX.

Strong buying in the EUR-USD

The EMU February inflation was downwardly revised from 0.8% to 0.7%.

"The reaction on the bond and the currency market was very limited and short‐lived. There was a strong bid for the euro below 1.39," says Piet Lammens at KBC Markets.

The pound to euro suffers further

Having broken below the strong support level at 1.20 last week it appears that the area around 1.1950 is now providing support.

"The intraday trading pattern of EUR/GBP was quite similar to what happened in the EUR/USD headline pair. EUR/GBP dropped temporary below 0.8350 early in the session, but the move was soon reversed. The finalisation of the Vodafone/Ono deal might have been slightly supportive for the cross rate, too," says Lammens.

EUR/GBP moved higher in line with EUR/USD early in the US.

"However, a new test of Friday’s top (0.8380 area) didn’t occur. Cable showed no clear trend and hovered in the lower half of the 1.66 big figure. The 1.6584/69 range bottom looks safe for now," says the KBC analyst.

Euro to pound exchange rate breaks out of descending trend

The below screenshot shows us that the euro has successfully broken out of a descending channel, thus the outlook for the EUR has turned brighter.

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What The Forecasters Are Saying About EUR to GBP

"In the longer term, the breakout of the resistance at 0.8350 (13/01/2014 high) validates a base formation with an implied upside potential at 0.8532. Key resistances stand at 0.8464 (13/11/2013 high) and 0.8585 (29/10/2014 high)." - Stephen Gallo at BMO Capital.

Could the pound euro exchange slide to 1.18 again? Latest GBP/EUR forecast

Technical Forecasts: EUR-GBP

"The sideways trading confines the pair that maintains stability above MA 50 & 100 that supports the upside move over intraday and short term basis, waiting for the breach of 0.8410 to open way for gains toward 0.8500 then 0.8565. Negativity on momentum indicators are forcing the sideways movement that might control the pair in the coming session until the pair can regain enough upside momentum to resume the upside wave that remains valid with stability above 0.8285." - ICN Financial.