GBP behaving like a funding currency

One look at the action in the GBP/USD during the Asian session would be enough to convince anyone that the British Pound is a new funding currency.

Each time, Trump would take lead in the polls, the risk aversion would worsen and the British Pound would rally against the Dollar. On the other hand, Clinton lead would trigger risk-on moves and a drop in the British Pound.

So it would not be surprising to see the British Pound deflate if the markets shrug off Trump fears and rally.