The GBP/EUR exchange rate has seen a modest recovery from the three-year lows below 1.1450 observed in April, now fluctuating around 1.18. Despite this brief stability, RBC Capital Markets anticipates that the Pound Sterling will face increasing pressure in light of fragile UK economic fundamentals. The firm expects the exchange rate to edge down to 1.11 by the end of 2026 as it grapples with a less favorable global risk landscape. With investor sentiment shifting and economic data impacting currency values, traders are advised to monitor the UK’s economic indicators closely. Understanding the evolving market conditions is crucial as they can significantly influence the GBP/EUR pair’s trajectory in the months to come.