GBP/USD drops more than 100 pips in one hour as US Democrat 'Blue Wave' victory looks unlikely

Omkar Godbole FXStreet Contributor

GBP/USD is feeling the pull of gravity as the safe-haven US dollar is drawing bids, with The New York Times and other media outlets reporting that President Trump is leading in the key state of Florida.

The currency pair has declined by more than 100 pips to hit a low of 1.30 in the past 60 minutes or so. Meanwhile, the futures tied to the S&P, which were up nearly 1% an hour ago, are now down 0.34% on the day.

While the jury is still out on the US elections, Trump's lead in Florida has weakened the probability of a Democratic blue sweep or control of both the Senate and the House. As such, risky assets are being sold. After all, a victory for Democratic presidential candidate Joe Biden is expected to lead to a bigger stimulus package.

Also, President Trump has scored a victory in Alabama, Tennessee, Oklahoma and is projected to win South Carolina, according to Bloomberg's live blog.

Technical levels

GBP/USD

Overview
Today last price	1.3013
Today Daily Change	-0.0013
Today Daily Change %	-0.10
Today daily open	1.3026

Trends
Daily SMA20	1.2988
Daily SMA50	1.2992
Daily SMA100	1.2883
Daily SMA200	1.2707

Levels
Previous Daily High	1.3079
Previous Daily Low	1.2903
Previous Weekly High	1.308
Previous Weekly Low	1.2881
Previous Monthly High	1.3177
Previous Monthly Low	1.282
Daily Fibonacci 38.2%	1.3012
Daily Fibonacci 61.8%	1.297
Daily Pivot Point S1	1.2927
Daily Pivot Point S2	1.2827
Daily Pivot Point S3	1.2751
Daily Pivot Point R1	1.3102
Daily Pivot Point R2	1.3178
Daily Pivot Point R3	1.3278

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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