Euro pound exchange rate: EUR/GBP (aka Royal Pair) forecasted to extend today's gains

At 14:30 in London we see the euro to pound exchange rate a solid 0.4 pct higher at 0.8404.

Turning it around, the pound to euro exchange rate is quoted at 1.1899.

(About the above quotes: All quotes here are wholesale figures. Your bank will subtract a discretionary spread to derive profit when delivering or transferring your money. However, an independent FX prover will beat your bank's quote and look to deliver up to 5% more currency. Find out more here).

Forecasting further gains to come

We hear from analysts at ICN Financial Markets who have reacted to today's move higher in the Euro against the British pound (these moves despite some solid UK data released today).

Commenting on the EUR/GBP outlook analysts suggest traders should however wait for confirmation of upside strength before jumping into a trade:

"The royal pair has found support in the 0.8325 regions following the re-test of Keltner channel’s lower line as seen on the provided daily chart. Prices have moved mildly upwards as harmonically expected, while the candlestick studies suggest further appreciation over upcoming sessions, as the candlestick formed on Tuesday was hammer confirmed by yesterday’s positive one.

"Surpassing the middle line of Keltner channel is required to affirm the positive divergence appearing on RSI14 and may assist MACD to give off considerable bullish sign.

"The short-term clue resides at 0.8460 and a break of which will open the door towards the psychological level of 0.8500 and 0.8650 respectively. However, hitting 0.8325 before clearing 0.8460 will limit the positive effects of the aforesaid bullish factors.

"Traders can set a buy order-market price- with targets at 0.8460 and stop loss at 0.8325 and another buy stop order at 0.8470 with targets at 0.8500 and stop loss at 0.8455."