Espruino-wifi not deepSleeping

I think your problem is that you are still connected to WiFi - while the microcontroller itself can draw very little power, WiFi still takes a lot.

Also, setDeepSleep(1); can't be used when there's a WiFi connection as it stops the UART from working correctly.

How about:

function finished() {
  wifi.disconnect();
  setDeepSleep(1);
}
function newCycle() {
  setDeepSleep(0);
  wifi.connect(WIFI_NAME, WIFI_OPTIONS, function(err) {
    if (err) { 
      finished();
      return;
    }
    HTTP.get("http://192.168.1.121:1880/espr­uino?Temp=24", function(res) {
      res.on('data', function(data) {
        console.log(data);
      });
      res.on('close', function(data) {
        console.log("HTTP got close.");
        finished();
      });
      res.on('error', function(data) {  // timeout not trapped 
        console.log("HTTP error.");
        finished();
      });
    });
  });
}
setInterval(newCycle, 20000);