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GBP/USD falls to 1.6063 on concerns of Scottish Cessation

FXStreet (London) - Cable continued its decline to post a 10-month low this at 1.6063, its lowest level since last November on concerns of Scottish independence.

GBP/USD led lower by Poll volatility

With spot presently trading at 1.6086, near term focus will fall on BoE Governor Carney’s speech at 08:30 GMT, alongside UK Production and Trade data.

Moving to Scotland, the ‘Yes’ campaign surged to 51% in favour of independence, according to a YouGov poll, but was countered by a later poll depicting a 52% ‘No’ bias. The vote is expected to take place on 18 September.

According to market participants, uncertainty over the future of Scotland’s financial sector and the currency the country may use has caused anxiety amongst investors.

GBP/USD technicals

With spot trading at 1.6086, the daily pivot point can be found at 1.6146. Support can be found below at S1 at 1.6057, and S2 at 1.6010. Resistance above resides at R1 1.6193, and R2 1.6282. Daily RSI is in oversold territory at 13 and indicating further downside alongside negative Moving Averages.

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