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GBP/USD rebound upended by potential US election result

Yesterday afternoon the rise above 1.30 in the GBP/USD extended to a high at 1.3048 at the start of the Asian session today. However, and as with the dollar elsewhere, the rebound in the US currency has delivered a reversal of fortune for the Pound as it seems increasingly likely Trump will be the next President of the United States. So, the GBP/USD has fallen back to a low at 1.2864. It surely would have fallen further had it not been for a corresponding drop in the EUR/GBP below 0.8350 at the same time. Also to note that US yields have risen by around 0.15% since yesterday and overtaken a move back above 4.50% in the equivalent UK 10 year yield. The risks of a test of the 200 day moving average in the GBP/USD looks very high right now. That is in place at 1.2814 and the GBP/USD is currently trading at 1.2868 

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