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GBP/USD extends recovery; not out of the woods

FXStreet (Córdoba) - GBP/USD inched up at the beginning of the New York session, extending its recovery from multi-month lows as UK employment data came in better than expected in contrast with disappointing US CPI.

GBP/USD stretched to a fresh weekly high of 1.6350 after data showed US consumer prices fell 0.2% in August and 1.7% YoY, versus 0.0% and 1.9% expected. The pound was already on demand and managed to even fill last week gap as UK unemployment rate dropped to 6.2%, beating consensus of 6.3%.

However, Cable remains vulnerable ahead of the Scottish independence referendum due tomorrow, with latest polls giving the ‘no’ vote the lead.

GBP/USD technical levels

In terms of technical levels, immediate resistances are seen at 1.6350 (intraday high), 1.6398/1.6400 (20-day SMA/psychological level) and 1.6415 (61.8% Fibo of 1.6643-1.6051).

Jameel Ahmad: Expecting an overall NO vote in the Scottish referendum - FXStreet

Jameel Ahmad, Chief Market Analyst for Forex Time (FXTM), believes that the pro-union campaigners will win the independence vote tomorrow, despite the surge of support for the YES camp.
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