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Both the euro zone and the U.K. are printing lower-tier reports today.

Will they lead to EUR/GBP extending its uptrend?

Before we get to the setup, let me first show you the top 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:

  • U.K.’s final GDP at 6:00 am GMT
  • Switzerland’s retail sales at 6:30 am GMT
  • France’s consumer spending at 6:45 am GMT
  • France’s preliminary CPI at 6:45 am GMT
  • Swiss KOF economic barometer at 7:00 am GMT
  • Euro Zone CPI estimate at 9:00 am GMT
  • Italy’s preliminary CPI at 9:00 am GMT
  • Canada’s monthly GDP at 1:00 pm GMT

What to Watch: EUR/GBP

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

In case you missed it, traders are (very) slowly taking on risks after China’s official PMIs pointed to a bit more recovery in June.

Will London session players get in on the bullish action? EUR/GBP will be an interesting pair to watch especially with both the euro zone and the U.K. printing lower tier reports in the next few hours.

Last I checked, markets were not too impressed with Boris Johnson’s plans to “build build build” the economy out of a recession. Meanwhile, euro zone sentiment indicators are slowly inching higher after seeing heavy dips in March and April.

EUR/GBP recently broke above an ascending channel resistance. What’s interesting about today’s setup is that the pair is back at the broken resistance.

If we see better-than-expected CPIs from the euro zone, or if the U.K.’s final GDP and business investment print to the downside, then we could see EUR/GBP make new June highs before the month ends.

If the “breakout” turns out to be a fakeout, though, and if euro bulls drop the ball in the next trading sessions, then EUR/GBP could return to previous areas of interest closer to .9100.

EUR/GBP’s average daily volatility suggests that a 55-pip move in either direction is possible today.

Which direction do you think the pair will go to before the day ends?