GBP/USD drops below 1.2950 as politicians voice their opposition against draft Brexit deal

With the initial market reaction to reports of the EU and the UK negotiators reaching an agreement on a text to deal with the Irish border, the GBP/USD pair surged to a daily high of 1.3047 but struggled to preserve its gains as British politicians quickly announced their opposition to the draft deal. At the moment, the pair is trading at 1.2950, still up 0.8%, or a little over 100 pips, on the day.

Elaborating on the deal, "The backstop will come in the form of a temporary UK-wide customs arrangement, with specific provisions for Northern Ireland, which go deeper on the issue of customs and alignment on the rules of the single market than for the rest of the UK," RTÉ News' Europe Editor Tony Connelly wrote. In response to the leaked information, British Lawmaker Rees-Mogg said PM May's deal failed to meet the promises of the conservative manifesto and added that he would vote against it. Additionally, former Foreign Secretary Boris Johnson said that he hoped that the Cabinet and the Parliament would block the deal. 

Finally, Northern Ireland's DUP's Brexit spokesman told RTE radio that if the Brexit deal was as reported, it would be voted down and not accepted. The UK Cabinet is scheduled to meet tomorrow the draft deal.

Today's Brexit headlines

• EU and UK negotiators agree text for Irish border - RTÉ News.
• UK PM May expected to present draft Brexit deal on Wednesday.
• The Times' Sam Coates: Business groups to be briefed on Brexit tomorrow.
• BBC's Kuenssberg: Cabinet to sign off a text of divorce deal tomorrow.
• DUP Spokeswoman: We have to wait to see a deal, our red lines are well known.
• UK: Cabinet will meet at 2pm tomorrow to consider the draft agreement.
• Irish ForMin Spokesman: Negotiations between EU and UK on a withdrawal agreement have not concluded.
• DUP’s Wilson: Seems all promises from UK PM May have been broken.
• DUP deputy leader Dodds: Brexit deal does not mark end-game of relationship with UK government.
• UK Lawmaker Rees-Mogg: If the leaked Brexit deal is accurate, it will be hard to trust PM May.
• EU leaders could meet on Nov. 25 to seal Brexit deal - Reuters.
• UK: Boris Johnson says he will vote against deal - Reuters.

Technical levels to consider

The initial resistance for the pair aligns at 1.3000/1.2995 (psychological level/100-DMA) ahead of 1.3040 (50-DMA/daily high) and 1.3110 (Nov. 6 high). On the downside, supports are located at 1.2930 (20-DMA), 1.2850 (daily low) and 1.2775 (Oct. 26 low).