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GBP/USD trying to rise from knees above 1.6200


FXStreet (Moscow) - GBP/USD has settled at 1.6218, but the downside pressure is still strong despite the recovery for the Asian low set at 1.6166.

Scotts have their say

GBP/USD is trying to recover after a head-spinning crash at the beginning of Asian session. The pair lost about 150 pips in a twinkling of an eye as Scottish referendum polls showed that the number of independence supporters overridden the number of nay-sayers. Noone knows for sure what will happen if the Scotts break free, but everyone agrees that the consequences will be dire both for the UK and the whole world economy. Though despite the uncertainty and anxiety are growing, people do not fully believe that this may happen. The first shock is over and now traders and investors are giving it the second thought. GBP/USD has recovered some ground, but a true rebound is out of the question due to market jitters ahead of the event. Later during the day the pound is likely to remain a victim of speculation on the matter. The downside pressure may resume once the European players join the game. Watch out for 1.6200 and 1.6181 (Asian opening) levels on the downside. The initial resistance is seen at 1.6232 (Asian high).

What price levels and patterns have to be considered?

Current price is 1.6220, with resistance ahead at 1.6230 (Daily Classic S3), 1.6234 (Daily High), 1.6256 (Daily Classic S2), 1.6277 (Hourly 20 EMA) and 1.6281 (Yesterday's Low).

Next support to the downside can be found at 1.6189 (Weekly Classic S1), 1.6167 (Daily Open), 1.6053 (Weekly Classic S2) and 1.5825 (Weekly Classic S3).

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