Breaking: GBP/USD plunges below 1.22 as Brexit talks about to collapse – levels

The EU and the UK have been intensifying their accusations of each other's positions regarding Brexit. UK Prime Minister Boris Johnson and German Chancellor Angela Merkel have held an acrimonious telephone call early in the day. One British account of the conversation says that Merkel instructed Johnson to keep Northern Ireland in the EU customs union. In response, the source has said that Johnson told his German counterpart that reaching a deal would be impossible.

European sources and journalists have responded with bemusement, saying it is not Merkel's style. Donald Tusk, the outgoing President of the European Council, has reacted with an angry tweet, accusing the UK PM of playing a "stupid blame game"

GBP/USD has tumbled down, hitting the lowest since September 4. Here is the move on the daily chart. The currency pair dropped below the 50-day Simple Moving Average on the way down. Downside momentum has intensified and the Relative Strength Index (RSI) is maintaining a safe distance from oversold conditions, allowing for more falls. 

Further support awaits at 1.2155, which was a swing low in late August, and then 1.065, and 1.2015. Resistance awaits at 1.2310, 1/2390, and 1.2415.

GBP USD technical analysis October 8 2019

EUR/GBP is trading just under 0.90, up sharply on the day. It is essential to remember that Europe is also set to lose out in the case of a no-deal Brexit. 

More Brexit: Three scenarios and GBP/USD price targets as B-Day approaches

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.

Feed news

Latest Forex News

Editors’ Picks

EUR/USD: Bullish case underpinned by weekend news

The EUR/USD pair has rallied Friday to close with gains for a third consecutive week at 1.1169. There was no particular catalyst for EUR gains. ECB scheduled to meet this week, although no fireworks expected this time.


GBP/USD: Uncertainty or relief? Action granted anyway

Hopes that the UK will avoid a hard-Brexit kept the Pound rallying against all of its major rivals by the end of last week, with GBP/USD finishing it a handful of pips below the critical 1.3000 level.


USD/JPY: Corrective slide to continue on sentiment

The USD/JPY pair closed the week at around 108.40, down Friday for a third consecutive day as the American currency remained under selling pressure. USD/JPY at risk of falling further only if it breaks below 108.00.


Gold turns flat above $1,490 as USD remains under pressure

After dropping to a daily low of $1,485, the XAU/USD pair staged a modest rebound during the American trading hours and turned flat on the day near $1,492.

Gold News

China’s downward economic path offers no escape from its trade problems

There were no surprises in China’s GDP figures as the government portrays an economy slipping steadily lower giving little promise of improvement or support for the waning global expansion.

Read more