Looking at the technical forecasts for the euro to pound exchange rate we hear that EasyForex are advising clients of further gains to come.

Analysts say they are bullish on the euro in the short term: "Long positions above 0.853 with targets at 0.858 and 0.86 in extension.

"Alternative scenario: Below 0.853 look for further downside with 0.851 & 0.849 as targets.

"The pair stands above its support and remains on the upside."

Forex.com are however more inclined to back declines in this exchange rate saying: "This cross continues to trade in a tight range between 0.8540 on Downside and 0.8590 on upside. MACD suggests that momentum is to the downside in ST."

Richard Driver at Caxton FX hints at pound sterling weakness owing to negative events on the fundamental front over the course of the past 24 hours.

Driver says:

"Another piece of poor retail sales data put the pound under pressure yesterday, as the CBI realized sales figure came in at its weakest level since early 2012.

"MPC member Charlie Bean also raised some concerns over the difficulties of rebalancing the UK’s economy (towards exports and away from financial services). Sterling is on a poor run of domestic news.

"From the eurozone, the European Commission delivered on expectations that it would allow some countries to ease austerity in order to boost growth. This pair is back at the familiar €1.17 level."