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GBP/USD recovers ground but doesn't get too far

FXStreet (Córdoba) - GBP/USD has managed to recover ground and even posted fresh daily highs after falling to fresh 10-month low amid jitters ahead of the Scottish independence vote.

GBP/USD hit a low of 1.6051 during the European trade, but its has been on recovery mode ever since, recovering more than a full cent and climbing as far as 1.6169 in recent dealings. At time of writing, Cable is trading at 1.6145, up 0.25% on the day.

Even BoE Governor Carney has addressed Scottish independence referendum during Inflation Report Hearing. He said that once borders are put in place, economic borders tend to build up and that central bank could not be a credible lender of last resort if it does not issue currency and went through the difficulties of adopting the pound unilaterally.

GBP/USD technical outlook

Valeria Bednarik, chief analyst at FXStreet notes that Cable holds a quite neutral technical stance in short-term charts. A rally above 1.2150 “should favor a continued advance towards 1.6200 area, 23.6% retracement of the latest bearish run”.

Bednarik locates next resistance levels at 1.6205, 1.6240 and 1.6285, while supports are seen at 1.6100, 1.6060 and 1.6020.

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