Sterling is back in the middle of the range against the Euro, though we still project an upside breakout to materialise eventually.

With the exchange rate approaching equilibrium again next week's Bank of England meeting on Thursday stands out as a potential source of volatility.

The prospect of more upside back up to the 1.15s is becoming increasingly probable in the coming week.

Inflation data forms the main data event in the coming week for Sterling while the charts confirm the GBP/EUR exchange rate remains locked in a sideways range.

 Next week sees the release of Trade Balance and growth data for the UK, whilst the European Central Bank releases the minutes from its last meeting, providing an insight into when they may end stimulus; technically the pair remains rangebound.

Politics takes centre stage over the next five days, with key events including the evolving Brexit story and Catalan elections in the Eurozone. Charts continue to show a bias to the upside.

Pound-to-Euro is forecast to rise in the week ahead as it emerges from a long sideways trend and the EU Council meets to decide if "sufficient progress" has been made in Brexit talks.

Technical studies confirm the GBP/EUR is liable to appreciate further over coming days, but Brexit-related political risks are heightened and volatility could increase.

Pound Sterling and Euro to consolidate but technicals hint a big break higher is due, dependent on progress on Brexit headlines over coming days which are currently dominated by issues of the Irish border.

The Pound starts the week on the front foot against the Euro which suffers on news German coalition talks are at crisis point but our technical studies suggest GBP/EUR is likely to remain close to familiar levels over coming days.

The Pound-to-Euro remains little changed as it is caught in the grip of uncertainty due to a blurring of the political and economic outlook for both currencies.

Pound Sterling is still bullish against the Euro over the longer-term while Brexit negotiations forms the fundamental focus for the coming week.