The Pound to Euro exchange rate fell heavily last week and still faces numerous medium-term headwinds but could be likely to find its feet around 1.1450 over the coming days if risk reduction ahead of the forthcoming holiday period leads the speculative market to cut back bets against Sterling. 

The Pound to Euro exchange rate was trading at substantially reduced levels ahead of the weekend but could have further to fall if the TD Securities strategy team is on the money when looking for Sterling to slip lower to around 1.13 in the fortnight or so to come.

The Pound to Euro exchange rate recovery has stalled in recent weeks and the risk of a partial reversal is now high due to an ongoing disagreement between the Bank of England (BoE) and financial markets about what will or will not be necessary to return inflation to its 2% target. 

Citi says the British Pound will retreat towards 2022's lows over the coming months.

EUR/GBP a sell in 2023 says Danske.

Foreign exchange strategists at RBC Capital say the Euro is to rise against the British Pound in 2023 owing to their pessimistic view on the UK economic outlook.

The Pound to Euro exchange rate's multi-month recovery was frustrated last week as Sterling became caught in a dense pocket of technical resistance, which could continue to obstruct the path higher in the days ahead and what is set to be a quiet week for UK and European economic calendars.

GBP is near multi-decade lows and the risk of a major decline is limited, says NatWest Markets as it assesses the currency's prospects for 2023.

The Pound to Euro exchange rate entered the new week near to November highs but could find itself confined to a narrow and potentially sleep-inducing range this week, one spanning the gap between Sterling's 100-day average at 1.1603 and technical resistance up near 1.1667.

Sterling embarking onto a bumpy road through 2023, energy prices & inflation drive underperformances.

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GBP/EUR looking better supported, 200-week moving average forms main technical roadblock.

Strategists at French bank Crédit Agricole are buying the British Pound against the Euro in the near term, finding the Eurozone's single currency has reached a short-term overvaluation.

GBP/EUR struggling to hold gains, suggesting downside potential for coming days.

The Pound to Euro exchange rate came undone in heavy losses following November's Bank of England (BoE) interest rate decision but it could be at risk of falling further and back near to early October lows in the days ahead if the market remains leery of Sterling going into Friday's release of UK GDP data. 

"Better, but not good," is how Goldman Sachs analyst Michael Cahill describes the British Pound's prospects in the wake of Rishi Sunak's anointment as Prime Minister.

The Pound to Euro rate has extended its recovery from September's lows to reach two-month highs in recent trade but may be susceptible to profit-taking this week due to uncertainty about Thursday's Bank of England decision and risk of the BoE raising Bank Rate to a lesser extent than markets expect.

The Pound to Euro exchange rate entered the new week on its front but could struggle to extend Monday's recovery by much beyond the nearby 1.15 level unless this Thursday's European Central Bank (ECB) leads the market to shy further away from the single currency.

The Pound to Euro exchange rate rose to one-month highs last week but could now struggle to advance much further in the days ahead and may even be at risk of fresh selling as the Westminster Circus descends again into the kind of farce most typical of one of those old Carry On films. 

Pound Sterling is tipped to fall against the Euro over the coming days by strategists at RBC Capital Markets in their latest "Trade of the Week" recommendation.

Global Reach Group have released their latest pack of key Pound Sterling forecasts covering the remainder of 2022 and the first three quarters of 2023.