Time to Buy Pound Sterling vs. the Euro is Approaching as "Brexit Pessimism Overdone" says one Strategist

The time to buy the Pound and sell the Euro is approaching says one institutional strategist willing to row against a trend of selling pressures.

Pound-to-Euro exchange rate is currently testing a key support level, which if broken could open the door to another impulse of selling pressures.

Technical and fundamental outlook for the British Pound against the Euro for the week commencing July 14.

The Pound-to-Euro exchange rate needs to record a solid recovery against the Euro on Friday, July 12 if it is to snap a record losing streak.

The British Pound is consolidating against the Euro after slightly better-than-expected growth figures for May indicate the UK economy is not in as bad shape as some analysts had feared.

Pound Sterling fell through a key support level against the Euro over the course of the past 24 hours, a move that could well spell further declines over coming days, if not weeks.

The rate of decline in the value of Sterling against the Euro appears to be fading, suggesting the exchange rate could well be finding a new floor that could stay in place during the summer with upside potential in the currency being seen should a Labour minority government back a second EU referendum.

Pound Sterling is trading at around €1.1138 at the start of the new week, after recoding its ninth consecutive weeks of declines in the week prior. Studies of the charts suggest the pair will probably go sideways over coming days but owing to the overriding negative trend it will come as little surprise to readers to hear that the risks remain skewed to the downside.