Breaking: GBP/USD crashes below 1.28 on doubts Brexit deal can pass

Yohay Elam FXStreet

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.

GBP USD technical chart DUP rejection falling October 17 2019

More: Brexit: Five outcomes and GBP/USD reactions as a deal may become real

Author

Yohay Elam

FXStreet

Yohay is in Forex since 2008 when he founded Forex Crunch, a blog crafted in his free time that turned into a fully-fledged currency website later sold to Finixio.

EUR/USD risks a deeper drop below 1.1750

EUR/USD keeps its vacillating mood in place as the the NA session drwas to a close on Tuesday, hovering below the 1.1800 hurdle amid acceptable gains in the US Dollar. In the meantime, market participants and the FX galaxy are expected to closely follow President Trump’s SOTU speech around 2AM GMT.

GBP/USD regains 1.3500 and above

GBP/USD extends its advance for the third day in a row on Tuesday, this time retesting the area beyond the 1.3500 hurdle. Cable’s uptick comes despite decent gains in the Greenback and the dovish message from the BoE’s Bailey at the UK Parliament.

Gold appears offered around $5,150

Gold is giving back a good portion of the recent multi-day rally, receding to the $5,150 zone per troy ounce amid the decent bounce in the US Dollar and mixed US Treasuty yields. In the meantime, markets’ attention remain on upcoming comments from Fed speakers.

Australia CPI to highlight persistent price pressures, backing a hawkish outlook

Australia will release its key set of inflation figures for the month of January on Wednesday, with the Consumer Price Index expected to rise by 3.7%, slightly lower than the 3.8% in the last month of 2025.

The Citrini report: How a debatable AI narrative can shake Wall Street

That AI-related headline alone was enough to rattle investors.US stocks slid sharply on Monday after a widely circulated Citrini Research memo outlined a hypothetical “2028 Global Intelligence Crisis”, warning that rapid AI adoption could push US unemployment into double digits as early as by mid-2028.

XRP pressured by weak ETF flows and declining retail interest

Ripple (XRP) is edging lower, trading above its intraday low of $1.32 at the time of writing on Tuesday. The decline from its weekly opening of $1.39 reflects heightened volatility in the broader cryptocurrency market, accentuated by tariff-triggered uncertainty.