Despite performing well at the beginning of last week, sterling is struggling today as it trades close to its lowest level since February. This could lead to more struggle in the days to come, according to one expert.
“That said, the bears do now look to be in control of proceedings, given the market closing on Friday to the downside of the recent 1.1490 – 1.1710 range, and the fact that the pair has notched four straight daily declines before today.
“Though the calendar is a little quiet to start the week, today will be more technically driven, with a failure to reclaim the aforementioned 1.1490 level likely to lead to further downside in the days to come.”
Sterling has struggled within the past week, despite seeing some positivity at the beginning of last week, with it seeing its best day of the month.
Since last week, the pound has continued to decrease against the euro.
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When it hit its monthly high, Mr Brown explained: “Sterling had its best day in a month against the euro yesterday, charging north of the 1.16 handle, as the pound started the week on the front foot, with optimism about the UK economic reopening continuing to mount.
“The key test now is whether the cross can consolidate said gains today, doing so would further embolden the bulls.”
On Friday, before the market closed for the weekend, the pound saw the “bottom of the trading range” according to Mr Brown.
The expert added: “Sterling softened a little against the euro yesterday, though continues to find strong support around the 1.15 handle, which is the bottom of the trading range that has been in play since mid-March.”
“However, I would advise against this. Market movements are often more marginal in reality than they appear.
“Especially during this volatile time, it’s safer to keep hold of your money in your UK bank account than purchasing or exchanging for holiday money.”
Another expert has also warned against buying travel money due to the uncertainties surrounding travel.
James Andres, senior personal finance editor at Money.co.uk previously told Express.co.uk: “Although countries have said they will be opening their doors to UK visitors, consumers must be cautious before exchanging money at this stage.
“International travel is currently prohibited by law until May 17 earliest.
“Until the government has confirmed that you will be allowed to travel, consider if you need to exchange travel money right now.”
Once international travel does resume, countries will be divided into a traffic light system of red, amber and green.