Breaking: GBP/USD tumbles below 1.27 amid doubts about reaching a Brexit deal

Yohay Elam FXStreet

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:

GBP USD falling on DUP objections October 16 2019

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.

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.

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