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GBP/USD Technical Analysis: Stalling Before Scotland Vote

GBP/USD Technical Analysis: Stalling Before Scotland Vote

Ilya Spivak, Head Strategist, APAC

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Talking Points:

  • GBP/USD Technical Strategy: Flat
  • Support: 1.6217, 1.6051, 1.5922
  • Resistance:1.6320, 1.6412, 1.6486

The British Pound is in consolidation mode and waiting for direction cues after rebounding as expected against the US Dollar. A daily close above the 23.6% Fibonacci retracement at 1.6320 exposes a falling trend line at 1.6412. This is closely followed by a resistance zone bracketed by the March 24 low and the 38.2% level in the 1.6459-86 area. Alternatively, a reversal below 14.6% Fib at 1.6217 clears the way for a challenge of the 1.6051-89 region marked by the September 10 low and the 23.6% Fib expansion.

The looming Scottish Independence referendum injects an uncomfortable degree of uncertainty into the outlook, arguing against taking directional bets on the Pound for the time being. With that in mind, we will stand aside.

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GBP/USD Technical Analysis: Stalling Before Scotland Vote

Daily Chart - Created Using FXCM Marketscope 2.0

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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