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GBP/USD stages mild recovery after sharp selloff

FXStreet (Córdoba) - GBP/USD is staging a mild recovery at the beginning of the American session after a Scottish independence poll sent Cable to its lowest level in over nine months.

For the first time, an poll is giving the lead to the ‘yes’ vote in Scotland independence campaign. YouGov poll showed a majority ‘yes’ vote, with a 51-49 margin excluding undecided votes.

GBP/USD left a huge bearish gap and extended losses to a low of 1.6102, last seen in November, before finding buyers. The pair has managed to recover some ground over the last hours, with the 1.6175 area capping the upside so far. At time of writing, GBP/USD is trading at 1.6165, recording a 0.95% loss on the day.

GBP/USD technical outlook

“In the 4 hours chart indicators aim slightly higher in oversold territory, still far from suggesting a stronger upward correction”, said Valeria Bednarik, chief analyst at FXStreet. “Sellers should surge in case of a recovery above 1.6200, in the 1.6220/1.6250 area, while renewed selling pressure below 1.6110 should open doors for a new leg lower towards 1.6070 price zone”.

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