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!
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Fresh Market Headlines & Economic Data:
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
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.
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 look out 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 for a swing short position to retarget the strong support area around 0.8550.