The pair is trading positive at the daily high around 1.2720 as the selling pressure in USD persists. Disappointing U.S. macro data released yesterday showed that the US trade deficit narrowed to $50.8 in April but was slightly higher than $50.7 expected, and the initial weekly jobless claims remained unchanged at 218K during the week ended May 31 as against expected dip to 215K. The main driver for the pair today is the US dollar as the Sterling fails to attract investors amid Brexit uncertainty. Meanwhile IMF is out with its annual US economic review and raised the US economic growth forecast for 2019 to 2.6% from 2.3%.
On the technical side the pair has reached the 23.6% retracement at 1.2730, where it is consolidating and holds the 50 hour moving average, thus giving the bulls the upper hand for the short term facing the immediate resistance at the high from yesterday session at 1.2741 while more offers will emerge at the 50 day moving average at 1.2905. On the downside first support stands at the 1.27 round figure which if breached can open the way for the daily low down to 1.2685. Intraday bias is neutral for the pair while the NFP data will provide the catalyst for a break.