Breaking: GBP/USD tumbles below 1.27 amid doubts about reaching a Brexit deal
|A UK official has said the government is downbeat is on chances of a Brexit deal. The Democratic Unionist Party is reportedly holding up progress. The small Northern Irish party rejects creating a customs border on the Irish Sea, risking the unity of the UK.
Moreover, reports from Brussels are suggesting that both sides have yet to iron out critical details and that optimism about striking a deal was somewhat premature.
GBP/USD has dropped to a low of 1.2693, already some 80 pips down on the day. Support awaits at 1.2650, followed by 1.2580. Resistance remains at 1.28.
Here is the move on the 15-minute chart:
UK Prime Minister Boris Johnson continues his efforts to convince the DUP as well as hardliners in his Conservative Party to support the accord. Frantic negotiations continue in Brussels and in London ahead of the EU Summit on Thursday.
On Tuesday, sterling surges as a Brexit deal seemed imminent and GBP/USD jumped to five-month highs.
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.