Gajan Mahadevan, Research Analyst at Lloyds Bank, suggests that after a precipitous drop, of close to 12% peak to trough, since November, GBP/EUR could now be set for a period of consolidation. Key Quotes “GBP/EUR has bounced off its February low of 1.26, but struggled to gain much upward momentum. There was a brief surge to a high above 1.3050 after the announcement of substantial monetary policy easing from the European Central Bank (ECB) last week. However, the weakness in EUR was short-lived, as comments during President Draghi’s press conference suggested there may be limits on the extent to which the ECB can ease policy further. GBP/EUR ended yesterday around 1.28. Over the next few months we expect the currency pair to gradually move higher and consolidate in a range. We forecast GBP/EUR at 1.33 in Jun-16, and 1.35 by year-end.” For more information, read our latest forex news.