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GBP/USD:break below 1.6500 would open the way to 1.6460 - BBH

FXStreet (Córdoba) - The BBH team notes that the GBP is under pressure amid the Scottish vote jitters and a break below 1.6500 would likely see a test of the March low near 1.6460.

Key Quotes

"After a soft manufacturing PMI yesterday, the UK reported a better than expected construction PMI today. The 64 reading is not only a six month high, but it is the second strongest in history after the 64.6 record high in January. The consensus was for 61.4 after 62.4 in July".

"However, the news failed to lift sterling, where the short-term market is still net long (judging from the futures market) and the approaching Scottish referendum is making for some nervousness".

“The YouGov poll found those preferring Scotland to remain within the UK still leading 53%-47%. However, this six-point gap is less than half what was reported in mid-August. Moreover, compared with other polls, the YouGov survey had generally shown a larger victory for the "No" camp”.

“Sterling had risen to an eight-day high yesterday near $1.6645, but today has fallen back... A break of $1.6500 would likely see a test of the March low near $1.6460, and we look for a break of $1.6300 in the sessions ahead”.

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