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Sterling paid at $1.6270 from $1.6240 after ICM poll error

FXStreet (Bali) - The latest Scottish referendum poll results, via ICM, showed the Yes side leading by 52 vs 48%. There was some confusion though, as the pro-independence side was initially reported at 52% vs 48%. The Pound tested $1.6240 bids before recovering back towards the $1.6270 level.

Earlier on Tuesday, the Pound took a ride lower, finding an intraday bottom at 1.6160 on a poor UK reading, which should diminish the excitement from the BoE hawkish camp for an early tightening campaign. According to Valeria Bednarik, Chief Analyst at FXStreet, "if employment readings on Wednesday also result weak, chances of a tighter economic policy will reduce even further."

GBP/USD was later benefited by safe haven selling following news of a liquidity injection in China's banking sector. As Valeria adds: "News pushed the pair to a fresh 2 week high of 1.6311, practically filling the weekly opening gap from 2 weeks ago."

Technically, Valeria notes: "The 1 hour chart shows a clear upward momentum with price holding above the 38.2% retracement of this month bearish run at 1.6280 and above its 20 SMA, while in the 4 hours chart, indicators are also biased higher crossing above their midlines, with some further gains now pointing for a test of 1.6350, 50% fib of the same rally."

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The Loonie started to rise against the US dollar during the European session and continue to climb on American hours. Recently USD/CAD bottomed at 1.0966, reaching the lowest price since last Thursday.
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Wall Street closed its best day in 4 weeks

The US stocks market rallied on Tuesday as investors digested well the news from China that it is boosting banks' liquidity and the hopes that the Fed is far from hike rates.
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