The outlook for the British Pound is not as poor as current investor sentiment would suggest, says a leading Wall Street investment bank.

GBP/EUR supported at 1.1741 & 1.1683, upside bias seen to prevail above 1.1683.

The Pound to Euro rebound risks being undermined by new Covid restrictions, the weight of which could potentially act to pull Sterling back near to 1.1550 this week or thereafter.

The Pound to Euro exchange rate is expected to appreciate in coming months according to foreign exchange analysts at Commerzbank, the Frankfurt based lender and global financial services provider.

The Pound to Euro exchange rate has unwound much of its Q4 rally and risks slipping back toward early November’s lows in the 1.1630 area if the market continues to eschew risk currencies in favour of safe-havens over coming days.

GBP/EUR supported at 1.1749 with scope for recovery if global markets stabilise & safe-haven demand ebbs.

"We are not expecting the pound to strengthen against either the dollar or the euro. In fact, the risk is that it weakens against both" - Capital Economics.

GBP is predicted to come under pressure against the Euro and Dollar ahead over coming weeks and months, with a more sustained recovery only likely in the second half of 2022.

GBP/EUR supported near 1.1838 & 1.1783, meets resistance at 1.1950, scope for 1.20.

HSBC says 2022 will see the Pound deliver an uninspired performance against the Euro and head lower against the Dollar.

GBP/EUR has begun to pare early November losses and could attempt to regain a toehold above 1.17 over the coming days.

"There's growing talk of the EU suspending its trade deal with the UK. But fresh Brexit uncertainty may not have as big a market impact as perhaps presumed" - ING.

"We doubt that GBP will profit much from early rate hikes" - Swedbank.

GBP/EUR starts the new week hobbled by the market response to last week’s Bank of England (BoE) monetary policy decision but it could be likely to stabilise above the nearby 1.1650 level over the coming days, albeit with only limited upside potential.

Pound Sterling looks set to consolidate below the previous week's highs against the Euro as traders take money off the table ahead of this week's pivotal Bank of England meeting.

Technical analysis suggests bullish breakout favoured and thee pair could potentially reach 1.20.

The Pound-to-Euro exchange rate could cement its grip on the 1.18 handle this week.

"We remain bullish on GBP as the USD-positive environment is usually also benefitting GBP" - Danske Bank.

The Pound might be in a lose-lose situation with investors who see prospective Bank of England rate hikes as supportive and a headwind, but Credit Suisse stick with a bullish forecast.

The analyst community are playing catch-up with a falling Pound and downgrading their forecast targets following a particularly poor run for the currency.