GBP/USD on a back foot below 1.2700 as Brexit pessimism weighs on trade sentiment

• Doubts over the UK PM Candidate Boris Johnson’s ability to ride through no-deal Brexit limit the GBP/USD pair’s strength.
• Lesser than forecast GfK Consumer Confidence also drags the quote downward.
• The UK PM May’s G20 visit and comments on Russia gain less market response.

With the no-deal Brexit supporter Boris Johnson being in the lead to become the UK Prime Minister (PM), the GBP/USD pair shows less response to other macro headlines while being short of data at home and trading near 1.2675 at the initial Asian session on Friday.

Even after trying to persuade the British voters by turning away from previous warnings over the no-deal Brexit, Boris Johnson continues to remain under pressure from the lawmakers of the UK and the EU.

Not only his rival Jeremy Hunt but some at the EU (as reported by the Guardian) also doubt Mr. Boris’s capacity to ride the British economy well through the Brexit.

Also weighing on the prices is a monthly reading of the UK GfK Consumer Confidence data that lagged behind -11 forecasts to -13.

Latest comments from the UK PM Theresa May from G20 that Russia must change its behavior to have a deal with Britain got less market attention may be due to her lack of political power.

The British first quarter (Q1) gross domestic product (GDP) will be on the traders’ radar for now. The growth figure is likely to remain unchanged on both QoQ and YoY basis by being at 0.5% and 1.8% respectively.

Technical Analysis

A 21-day exponential moving average (21-D EMA) at 1.2690, followed by 1.2700 round figure and current month high of 1.2785 limit the pair’s immediate upside attempts, which in turn highlights 1.2660, 1.2610 and monthly bottom of 1.2506 as the key supports.