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

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 14. Here is the move on the daily chart. The currency pair dropped below the 50-day Simple Moving Average on the way down.

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.

-- more to come