EUR/GBP refreshes session tops, looks to build on momentum beyond 0.8600 mark

The EUR/GBP cross shot to fresh daily tops during the early European session, with bulls making a fresh attempt to build on the momentum beyond the 0.8600 mark.

The cross attracted some buying near the 0.8570 region on the first day of a new trading week and for now, seems to have stalled last week's rejection slide from a short-term descending trend-line hurdle. A combination of factors continued acting as a headwind for the British pound and provided a goodish lift to the EUR/GBP cross.

Investors remain worried that the UK may delay its plans to end restrictions fully in light of the spread of the so-called Delta variant. In the latest development, the UK Prime Minister Boris Johnson will make a statement this Monday and might push back the timeline to end of restrictions in light of the spread of the so-called Delta variant.

The initial plan was to reopen the economy fully on June 21. The delay dampened prospects for a rapid UK economic recovery from the pandemic. This comes amid the EU-UK collision over Norther Ireland protocol, which was seen as another factor that further contributed to the sterling's underperformance against its European counterpart.

In a standoff over the Northern Ireland protocol, the EU warned of swift and firm action if the UK fails to implement its post-Brexit obligations. Adding to this, French President Emmanuel Macron said that NI is not a part of the UK. This, along with a modest pickup in the shared currency, provided an additional lift to the EUR/GBP cross.

The US dollar was seen consolidating Friday's strong move up as investors seemed reluctant to place any aggressive bets ahead of the FOMC meeting on June 15-16. This, in turn, was seen as a key factor that benefitted the euro. The combination of factors allowed the EUR/GBP cross to snap two consecutive days of the losing streak.

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