Breaking: GBP/USD crashes below 1.28 on doubts Brexit deal can pass
|The Democratic Unionist Party (DUP) has formally stated it will vote against the Brexit deal, complicating its chances of passing. Prime Minister Boris Johnson will bring the vote to parliament on Saturday.
Hardliners in the Conservative Party continue supporting the accord. Labour leader Jeremy Corbyn has said that the accord is worse than the previous deal negotiated by former PM Theresa May. The Liberal Democrats object Brexit altogether and the Scottish National Party (SNP) also opposes leaving the EU and sees the deal as detrimental to Scotland. The vote hinges on the votes from Labour members representing constituencies that voted Leave.
GBP/USD has dropped below 1.28, now trading some 200 pips below the peak of 1.2989 it reached after the agreement was announced. Support awaits at the daily low of 1.2748, followed by 1.2706. Resistance is at 1.2877 and 1.2920.
Here is how the pound performed, first rising and then falling in a highly volatile day.
More: Brexit: Five outcomes and GBP/USD reactions as a deal may become real
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.