GBP/USD Price Analysis: Slips below 1.3000 as hopes of blue wave recede

GBP/USD defies the upside break of a two-month-old descending trend line.
Recent polls mark a tough race between the Democrats and Republicans.
US dollar reverses the previous day’s heavy losses, stocks, bond yields drop.
100-day EMA, an ascending trend line from June 29 lure the bears.

Anil Panchal FXStreet

GBP/USD slumps over 50 pips in its latest drop from 1.3036 to currently around 1.2970/65 during early Wednesday. The pair portrays the broad US dollar strength amid fears of the Republicans’ victory in the 2020 US elections.

Check live updates here: Four more years for Trump or a victory for Biden? – Live coverage

In doing so, the quote reverses the early Asian run-up to the highest levels since October 22 while also not respecting an upside clearance of the multi-day-old resistance line.

The pair’s moves could be traced to the US dollar gains that propel the dollar index (DXY) to snap a three-day losing streak with the heaviest gains in over a month.

For now, GBP/USD traders eye a 100-day EMA level of 1.2890 as nearby support ahead of challenging a multi-day-old support line near 1.2880/75.

Meanwhile, bulls are likely to return only if the quote successfully refreshes the fortnight high of 1.3140.

GBP/USD daily chart

Trend: Further weakness expected

Additional important levels

Overview
Today last price	1.3037
Today Daily Change	11 pips
Today Daily Change %	0.08%
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

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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