The Pound Sterling (GBP) gains slightly to near 1.2980 against the US Dollar (USD) in Tuesday’s London session. The GBP/USD pair rises ahead of the United States (US) presidential election, which will start in the North American session. The US Dollar Index (DXY), which gauges Greenback’s value against six major currencies, falls slightly to near 103.80.

The Greenback went through a significant unwinding of long positions after the Des Moines Register/Mediacom Poll showed that current Vice President Kamala Harris leads former President Donald Trump by three points in Iowa, the state where Trump won clearly in 2016 and 2020. The US Dollar had a strong run-up in October as traders were pricing in Trump’s victory, given his preference for protectionist policies is expected to support the Greenback’s valuation.

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GBP/USD Forecast: US election jitters could cap Pound Sterling's rebound

GBP/USD rose toward 1.3000 after starting the week with a bullish gap but retreated slightly in the second half of the day on Monday. The pair trades in positive territory in the European morning on Tuesday as investors grow anxious while gearing up for the US presidential election.

The US Dollar (USD) came under heavy selling pressure early Monday as some betting sites suggested that Kamala Harris could win the election. Later in the day, the bearish action seen in Wall Street helped the USD find demand as a safe-haven. 

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