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Now that more economies are starting to reopen, traders could go back to pricing in fundamental concerns.

Will Brexit and stimulus headlines move EUR/GBP today? Let’s revisit a setup from late last week.

For now, check out the major headlines during the Asian session:

Currency Snapshot

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Economic Calendar:

  • Italy’s markets out on National Day holiday
  • Switzerland’s retail sales at 6:30 am GMT
  • Spain’s unemployment rate at 7:00 am GMT
  • Switzerland’s manufacturing PMI at 7:30 am GMT
  • U.K.’s mortgage approvals at 8:30 am GMT
  • U.K.’s individual lending at 8:30 am GMT

What to Watch: EUR/GBP

EUR/GBP 1-hour Forex Chart
EUR/GBP 1-hour Forex Chart

Last Friday we talked about EUR/GBP hitting a range resistance with a divergence poppin’ up on the 1-hour time frame.

Since then, the pair has faked out above the range to hit .9050 levels before going back down to the consolidation.

The pair is now near the .8900 major psychological level that marks the range support. Can euro bulls inspire another bounce?

Now that economies are reopening, the U.K, and EU can resume their Brexit talks. Unfortunately, it’s looking a lot like Britain is heading for a hard Brexit.

Meanwhile, EUR traders are waiting for the ECB’s statement this week, where Lagarde and her team are expected to make moolah rain via its Pandemic Emergency Purchase Program (PEPP).

If Brexit uncertainties dominate today’s trading, or if more traders price in stimulus from the ECB, then we could see EUR/GBP head for its .9000 range resistance.

But if today’s lower-tier U.K. data print to the upside, or if traders turn cautious ahead of ECB’s decision, then EUR/GBP coudl break below its range and retest .8830 – .8860 former areas of interest.

Need help in placing your entries and targets? Play around with EUR/GBP’s volatility analysis and see if it helps you with your trades!