Pound Sterling has recovered against the Euro alongside improved market sentiment and we see two credible upside targets for the exchange rate.
The European Central Bank (ECB) cut interest rates and showed it was in no rush to deliver the next one, a stance analysts say can underpin the Euro.
Pound Sterling showed its disappointment to news the economy failed to grow in July, whereas the investment community thought it would register a 0.2% expansion.
The Euro's recovery against the Pound has suffered a setback, but technical analysts we follow say it is too soon to throw in the towel.