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GBP/USD clings to 1.6300

FXStreet (Edinburgh) - The sterling is now trading in a narrow range, with the GBP/USD meandering around 1.6300 and 1.6320 ahead of the Scottish referendum results.

GBP/USD all the attention to Scotland

Spot managed to revert yesterday’s decline post-FOMC meeting, bouncing off troughs in the mid-1.6200s to levels above 1.6300 overnight. The uncertainty surrounding the Scottish referendum will dominate the scenario today, with results estimated to come out tomorrow. Data wise in the UK economy, Retail Sales expanded 0.4% inter-month in August and 3.9% over the last twelve months; despite results were below expectations they did not weigh on the GBP, which tries to keep the trade above the 1.6300 handle. In the view of analysts at BBH, “There is some genuine concern that Scottish referendums will be a recurring theme (see Quebec) on a small victory for the unionists. Such fears, coupled with the fact that some have already positioned for such an outcome may, may curtail the positive sterling response to the a "no" vote”.

GBP/USD levels to consider

As of writing the pair is up 0.30% at 1.6327 with the next resistance at 1.6358 (high Sep.4) ahead of 1.6392 (21-d MA) and then 1.6418 (61.8% of 1.6645-1.6052). On the downside, a breach of 1.6234 (10-d MA) would target 1.6162 (low Sep.16) en route to 1.6100 (psychological level).

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Session Recap: USD retreats in eventful session

A quite eventful session in Europe with the Scottish referendum taking center stage. The European Central Bank allotted its first TLTRO with take-up below expectations while investors still digest Federal Reserve decision. Rate decisions have also been announced by the Swiss National Bank and the Norges Bank today.
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