Euro to Pound Forecast

Post-Budget relief for British pound, but a wary eye on the local elections in May.

Profit taking may prompt setback, test of 1.1830, as consolidation could follow holiday rally from 1.17.

EUR/GBP has been in a strong uptrend since breaking out above the 0.7490 range highs in January.

The euro has taken back the initiative against pound sterling and has been in the ascent since the 10th of March.

The pound's solid fundamentals will shine through by the end of the year end, leading some analysts to forecast a fall to 0.72 versus the euro. 

Central bank impotence and a potential bottom in the euro mean that most of the volatility for EUR/GBP will likely be supplied by referendum speculation.