The pair is trading positive close to weekly high as the selling pressure in USD intensifies after Mario Draghi’s comments. Disappointing macro data released earlier 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 pound 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 holds the 50 hour moving average thus giving the bulls the upper hand for the short term facing the immediate resistance at daily high at 1.2741 while more offers will emerge at the 50 day moving average at 1.2912. 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 1.2668.