The Euro to Pound exchange rate (EUR/GBP) is forecast to head sideways in the short-term, however a technical analyst at one of the UK’s best-known financial brands believes the Euro should win out longer-term.

The call comes as EUR/GBP is seen trading at 0.8506, just shy of this week’s high at 0.8531.

“Although prices are trying to nudge higher, we remain under 0.8525 pivot resistance,” says Robin Wilkin, a technical analyst with Lloyds Bank Commercial Banking. “A move through this resistance would add further conviction that prices should work back towards medium-term range highs in the 0.8800-0.8900 region, which is our underlying bias.”

Technical studies try to understand the structure of the market and are useful at noting where buying and selling pressures lie. They are also handy at cutting out the day-to-day noise caused by politics and economic data releases and allow those with international payments to plan in a more objective manner.

This would appear to be a longer-term call. Indeed, for now Lloyds say they see further sideways action around current levels.

Should a drop through 0.8450/20 support occur Wilkin says this opens up the risk of a re-test of the key 0.8300-0.8250 range lows.

Longer term, Wilkin says it still remains unclear if the declines from last October’s highs are corrective, or part of a more complex topping process.

In short, has the Euro seen its best against the Pound come to pass?

“A break of 0.8300-0.8250 key support would suggest a meaningful top developed, with 0.80-0.78 next support. But, while over, we cannot rule out an eventual re-test of the ‘flash crash’ highs and potentially the 2009 highs at 0.9802,” says Wilkin.

Also maintaining a similar stance to that of Wilkins is Karen Jones, a technical analyst at Commerzbank.

Jones has studied the charts and says "EUR/GBP’s near term outlook is neutral to positive while above 0.8300. EUR/GBP nears the 55- and 200-day moving averages at 0.8560/95 above which lurks the seven month resistance line at 0.8628."

This could slow progress but a break above here the Euro might do some more significant damage to the Pound.

Also giving a vote of confidence to the Euro is analyst Ralf Umlauf at Helaba Bank in Frankfurt who says the technical picture is "firming" for the Euro.

“The technical picture has improved after the euro recovered on the back of the results in France. The slide towards the December low at 0.8305 has been corrected, and the Stochastic has already rallied back above its signal line,” notes Umlauf in a note dated April 26.

It has been a good week for the Euro with markets buying the single currency following Emmanuel Macron’s success in the first-round of the French presidential election.

The win took some risk premium out of the Euro which was trading lower as investors showed nerves towards a Marine Le Pen win.

The Euro is also seen moving higher ahead of Thursday’s European Central Bank (ECB) meeting with anticipation running high that the Bank is soon to announce it will start withdrawing its monetary stimulus.

There are also expectations that communication from ECB President Draghi and his team will look to lay the groundwork for an interest rate rise at some point in coming months.

The number one risk for the Euro going forward is if Draghi disappoints on this front and seeks to downplay such moves.

We would expect the Euro to give away its recent gains in such an event and let the Pound back into the game.