Hans Redeker, Head of Global FX Strategy, predicted a rise to $1.50 because the pound offers a “fantastic opportunity” despite Brexit.
He said: “For the time being it is leaning to the upside. Sterling is a currency which is hugely undervalued but has become weaker for hugely political considerations.
“Though when you take politics out of the situation and you think you are getting calmer waters concerning the new relationship with Europe then sterling is going to offer significant opportunities.
“The question is from where and from which level are we going to start and I am afraid at the moment we have very little visibility on that.
“So I think for the time being euro sterling is catching a bit and it is going up but I would say later in the year sterling is going to offer a fantastic opportunity.
“I think that I would trade it against the US dollar and that would actually mean a move back up to $1.50 is a possibility.”
The pound to euro exchange rate ended last week with sterling trading fairly low in the region of €1.124.
However, an expert has told Express.co.uk there may be a “lift” to the pound.
Laura Parsons, a currency analyst at TorFX, spoke to Express.co.uk regarding the latest exchange rate figures.
She said: “The GBP/EUR exchange rate closed out last week trading in the region of €1.124 as the pound found little reason to rally.”
However, she added there are a few events this week that may affect the pound’s standing.
“Today’s run of Eurozone data could have an impact on the pairing.
“But, investors will also be looking ahead to a Thursday and the Bank of England’s (BoE) long-awaited interest rate decision.
“A rate hike from the BoE could give the pound a lift this week, but if the central bank keeps rates on hold we could easily see GBP/EUR falling to new multi-month lows.”
Higher interested rates announced by the banks would boost the British economy.
This is because they attract investment into the country, boosting the value of sterling.
Many Britons will have their fingers crossed for a positive movement in the sector.
Currently, the Post Office is offering traveller’s 1.1015 euros for the pound.