GBPUSD – Last week we noted that a substantial shift in British Pound sentiment warned a bounce was imminent, and indeed we see mounting evidence that the GBP could bounce further.
Trade Implications – GBPUSD: The critical question is nonetheless simple: until we have the results of the highly-anticipated Scotland vote, there’s no telling where the GBP might go. We price out the probabilities on the Scotland vote based on derivatives pricing. And though a bounce does in fact seem likely, there is too much uncertainty to argue in favor of getting long before the result. We will update our sentiment-based forecasts once everything is said and done.
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