Fresh attempts to retrace Tuesday's gains

A glance at the live currency market boards shows the euro pound exchange rate is trading 0.14 pct in the red at 0.8551.

Please note that the above is a spot market quote to which your bank will affix a discretionary spread. However, an independent FX provider will guarantee to undercut your bank's offer, thus delivering more currency. Please find out more here.

EUR-GBP surged higher yesterday on the back of comments by ECB President Draghi and a solid ZEW sentiment report, add to this the impact of one-off corporate flows and we see some solid declines.

However, rates are now approaching key previous resistance at .8600, a level that has put a cap on rates repeatedly over the past three months.

Analysts at retail trading provider GFT have today recommended that traders look at selling the euro pound exchange rate

Matthew Weller, Technical Analyst at GFT lays out the case for further euro pound declines:

"As for the trading implications, the current market price presents a favorable entry for a sell trade assuming the current .8400-.8600 range holds.

"However, if rates manage to break above this barrier, a quick continuation toward .8700 is likely in the coming week. As a result, there are two clear trade opportunities, depending on your bias.

"First, bears on the EUR/GBP could look to sell the pair above .8560 with a stop at .8610 (above previous resistance at .8600) and a target at .8500 (near this week’s lows).

"Meanwhile, prudent bulls could set a stop buy order at .8610 (above previous resistance at .8600) with a stop loss back at .8570 (back under the key .8600 level) and a target up at .8690 (ahead of the 78.6% of the Feb-Mar pullback).

"It would also be prudent to move the stop loss up to breakeven on a rally to .8650 after this trade triggers. These trade ideas will remain valid until the end of this week’s trade."