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EUR/GBP is hitting a strong area of interest once again, but can sellers continue to hold after economic updates from both the Euro area and the U.K.?

Before moving on, ICYMI, today’s Daily U.S. Session Watchlist looked at a bullish setup on USD/CHF, so be sure to check that out to see if there is still a potential play!

Intermarket Update:

Equity Markets Bond Yields Commodities & Crypto
DAX: 15554.18 -0.34%
FTSE: 7072.97 -0.88%
S&P 500: 4290.61 +0.23%
NASDAQ: 14500.51 +0.98%
US 10-YR: 1.478% -0.058
Bund 10-YR: -0.187% -0.001
UK 10-YR: 0.731% +0.007
JPN 10-YR: 0.065% +0.017
Oil: 72.85 -1.62%
Gold: 1,779.10 +0.073%
Bitcoin: $34,334.14 +4.50%
Ethereum: $2,105.55 +15.42%

Fresh Market Headlines & Economic Data:

S&P 500, Nasdaq rise to record highs to start the week led by Facebook

U.S. warplanes strike Iran-backed militia in Iraq, Syria

10-year Treasury yield eases slightly, falling below 1.5% to start the week

Fed’s Rosengren Says 2022 Rate Hike in Play as Job Market Heals

McConnell demands infrastructure de-linked from fast-track bill

Dallas Fed Manufacturing Index rose 14 points in June to 29.4

Emergency ECB stimulus could end next March: Holzmann

ECB hawks and doves spar as tapering debate fires up

ECB should retain flexibility of emergency stimulus scheme – Panetta

Upcoming Potential Catalysts on the Economic Calendar

Japan Unemployment Rate at 11:30 pm GMT
Japan Retail Sales at 11:50 pm GMT
France Unemployment Rate at 5:30 am GMT (June 29)
U.K. Housing Prices at 6:00 am GMT (June 29)
France Consumer Confidence at 6:45 am GMT (June 29)
Spain Retail Sales, Inflation Rate at 7:00 am GMT (June 29)
U.K. Mortgage Approvals, M4 Money Supply at 8:30 am GMT (June 29)
Euro Area Consumer Confidence at 9:00 am GMT (June 29)
Germany Inflation Rate at 12:00 am am GMT (June 29)

What to Watch: EUR/GBP

EUR/GBP 1-Hour Forex Chart

EUR/GBP 1-Hour Forex Chart

On the one-hour chart above of EUR/GBP, we can see that the pair continues to ride a very strong area of interest around the 0.8600 handle.

It’s been mainly acting as a resistance area, and may do so again this week, that’s if the upcoming economic updates from both the U.K. and the Euro area favor the bears in the short-term.

Is EUR stronger than GBP? Check out our newly released Currency Strength Meter!

In the upcoming London session, we’ve got mid-tier updates from Europe, and while they’re not likely to move the markets on their own, any kind of consensus may momentarily bring enough volatility for potential short-term pip gains.

Given the strong resistance 0.8600 has been and the bearish lean on the pair over the past two months, we’ll be on the lookout for bearish reversal patterns for a potential short position if the U.K. posts positive updates vs. a negative lean from Euro area updates.

With an ATR of around 45 pips per day, this could be an opportunity to catch 20 to 30 pips if volatility picks up, or setup up a swing short position to retarget the strong support area around 0.8550.