GBP/USD Slides Lower After Attempting to Break Above 1.30

Early on Friday, the Pound has edged lower against the US dollar after attempting to break past the 1.30 level, after strengthening briefly till 1.2970. At the time of writing, GBP/USD is trading around 1.291.

While the early general elections were initially focused on getting Brexit done, it is soon turning more political with the battle between Labour Party and Conservatives turning into one about socialism and and nationalism vs. Brexit and capitalism.

Overall, GBP/USD has strengthened by over 8% since early September as it became increasingly clear that stakeholders will do everything possible to avert a no-deal Brexit scenario. Since then, however, it has traded mostly in a range between 1.29 and 1.30 as markets adopt a wait and watch approach until the December 12 elections.

On Tuesday, the support at 1.29 broke briefly after a TV debate between Opposition leader Jeremy Corbyn and PM Boris Johnson leaned more in the former’s favor. However, GBP/USD quickly reversed its losses driven by a weakness in the US dollar over uncertainties surrounding the US-China trade deal.