- GBP/USD shed 220 pips from the day high.
- USD attracts bids as political uncertainty casts dark clouds over risk sentiments.
Today, GBP/USD bears are in the driving seat, selling it down to 1.2930-25 – an area near the intraday low. The pair had a good start earlier – continuing on the recovery mood this week, moving to near two-week highs.
The bounce-back from recent lows near mid-1.2800s fizzled out after touching 1.3140, and a dramatic sell-off started.
The US elections results are showing a tighter race than anticipated. The election updates, along with the potential delay in the results from key battleground states: Wisconsin, Michigan and Pennsylvania, resulted in considerable fund flows to the US dollar.
The US-equity-futures decline added to the safe-haven appeal of the greenback as the sentiments got a hit after Trump said he would approach the Supreme Court against the rigged-election.
GBP/USD action ahead will revolve around the US election developments along with broader risk sentiments.
At the time of writing, one British Pound buys 1.2930 US dollars, down -0.91% as of 9:15 AM UTC.