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GBP/USD trading the polls on Scottish vote

FXStreet (Guatemala) - GBP/USD is trading at 1.6263, down -0.08% on the day, having posted a daily high at 1.6280 and low at 1.6249.

GBP/USD is on tenterhooks and markets are trading around updates in relation to the Yes / No pollings of whether Scotland will break away from the UK. The pound will come under fire as investors move away from British investments as there will be much uncertainty going forward of how relations between the countries will pan out in respect of trade and domestic operational capabilities while there are many questions still left unanswered in such a scenario where the United Kingdom loses Scotland to independency.

Moreover, the BoE’s and MPC policy will be subsequent of this result going forward. On this note, the lower CPI readings will not support an early rate hike at this stage and as Valeria Bednarik, chief analyst at FXStreet explains, if employment readings on Wednesday also result weak, chances of a tighter economic policy will reduce even further. Technically, she explained the 4 hours chart indicators are biased higher crossing above their midlines, with some further gains now pointing for a test of 1.6350, 50% retracement of the same rally.

GBP/USD support and resistance levels

Support levels: 1.6250 1.6220 1.6190

Resistance levels: 1.6315 1.6350 1.6385

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