GBP/USD remains on a back foot around multi-year low amid no-deal Brexit fears

• The GBP/USD pair bears the burden of no-deal Brexit pessimism as the UK PM Johnson and the team prepare for October 31 Brexit despite warnings from internal sources.
• Lack of data/events highlights trade/political news to be observed for fresh impulse.

While the first week of the PM Johnson’s rule didn’t bode well for the British Pound (GBP), as anticipated, the GBP/USD pair remains weak near multi-year low as it trades close to 1.2380 during early Monday morning in Asia.

With the hard Brexiteer winning the UK’s Prime Minister (PM) race, leaders at the EU started receiving uncomfortable signals from Britain.

Not only Boris Johnson, who insisted abolishing Irish backstop from the Brexit deal to make it happen on time, but his team members like Finance Minister Sajid Javid and Cabinet Office Minister for no-deal Brexit planning Michael Gove also flashed signals to remain prepared for no-deal Brexit.

Latest news from the Financial Times quotes the Confederation of Business Industries (CBI) research that mentions the EU is less prepared for the no-deal Brexit contrast to its claims. Further, the Guardian also reported that PM Johnson is warned by the  Institute for Government (IfG) for his “managed no-deal” expectations.

Elsewhere, the Sky News came out with the report that Britain sends extra troops to Bahrain to protect its oil ships in the Gulf after Iran’s seizure of the UK ship extends into the second week.

Investors have little data/event scheduled for publishing on the economic calendar but news concerning the Brexit and the prospect of the US-China trade deal at the two-day negotiations in Beijing will offer intermediate market moves to follow.

Technical Analysis

Even if close to oversold levels of 14-day relative strength index (RSI) argues the quote’s further declines towards early March 2017 lows surrounding 1.2300, sellers are less likely to refrain from entering if prices slip beneath 1.2375. On the other hand, July 23 low around 1.2420 can please buyers during the pullback.