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

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