Pound to Euro exchange rate today: 1 GBP = 1.1345 EUREuro to Pound Sterling exchange rate today: 1 EUR = 0.8813 GBPPound Sterling’s recent dip against the Euro leaves it looking oversold according to some studies, and there is a prospect for a recovery into the end of 2017.

The British Pound has endured something of a wild ride against the Euro this week - finally the predictable and somewhat boring bounce between 1.13 to the bottom and 1.14 to the top broke on Tuesday, July 12 feeding some excitement into this market.

Unfortunately, for those wanting a stronger Pound, the move went against them with Sterling going as low as 1.1174.

The currency is however now looking oversold on some estimates with analysts at British high-street giant Lloyds Bank saying they are targetting GBP/EUR exchange rate to end the year higher

Much of the argument for Sterling occupying higher ground rests with expectations for future policy changes at the Bank of England.

“In recent weeks, both the BoE and ECB have moved towards less ‘dovish’ stances. Following the 5-3 vote at June’s BoE policy meeting, Chief Economist Haldane and Governor Carney altered their tone, leading the market to bring forward its expectations of future UK interest rate rises. This leaves the risk to the Bank Rate profile skewed to the upside,” say Lloyds.

This leaves Lloyds with the opinion that some lift in the exchange rate is possible from here.

Releasing their latest batch of foreign exchange forecasts, Lloyds say they reckon the Pound to Euro exchange rate should end the year at 1.13.

Recall that over recent days we have been pointing out just how the GBP/EUR likes to stick around this level? It’s almost a neutral resting state for the currency pair.

But, we would caution that this does not mean the Pound will immediately bounce back.

No, it could still go lower before recovering.

Indeed, technical analysts at Lloyds - they study the market from a technical perspective - see scope for further declines.

Lloyds’ technical analyst Robin Wilkin notes that GBP/EUR has dipped and is consolidating below 1.1236, “driven by post-Broadbent GBP weakness and EUR breaking above key 1.1450 range resistance,” against the Dollar.

Intra-day momentum is at oversold levels though, “but as long as retracements hold” below 1.1235-1.1299, Wilkin looks for a test of 1.11.

So putting it all together, more weakness is likely ahead of a settling higher.

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McCafferty Offers a Boost

The Bank of England remains a key driver of Sterling direction at present with a growing debate emerging amongst policy-makers over whether or not the time to raise interest rates and end (and ultimately reverse) the quantitative easing programme.

Earlier this week we saw how Ben Broadbent helped scuttle the Pound below 1.13 against the Euro on his comments that now was not the time to raise rates.

Leaning the other way is Ian McCafferty who tells the Times newspaper that the Bank should "think about" selling down its £435bn stock of assets, despite previous indications that any reduction in its balance sheet will not occur until interest rates have first been raised several times.

McCafferty, an external member of the Monetary Policy Committee, said the Bank might want to follow the example of the US Federal Reserve, which has said it is planning to begin winding down its $4.5 trillion stock of assets accumulated since the financial crisis.

"I think it's a question that needs a bit of asking,” says McCafferty.

The news helped spur on Sterling’s recovery into the second-half of the week.

Repeal Bill to Test UK Political Stability

Another political test confronts Pound Sterling - which now trades as a political currency in many respects - is the publication and passage through parliament of the Repeal Bill.

Publication is slated for today.

The bill seeks to convert EU law into British law and is a fundamental cornerstone in the UK’s exit from the European Union as it is required to legal stability.

Secretary for Exiting the European Union, David Davis, says he will "work with anyone" to make it a success, but he faces opposition.

Liberal Democrat leader Tim Farron told the government: "This will be hell."

Labour vowed to vote against the legislation unless there were significant changes to the details previously set out.

But, the Conservative Government have the Northern Irish Democratic Unionist Party at hand to support them which should see them win key votes, such as the passing of the bill.

But, any hiccups, stalling or outright failure on this front will surely undermine the UK currency, so keep abreast of developments here.