GBP – Make or Break as we head towards Scottish Independence Vote on Thursday
GBPUSD – Make or Break as we head towards Scottish Independence Vote on Thursday.
Lets look at the Daily chart on GBPUSD. On last Sundays news as we heard that the YES votes were neck in neck with the No we saw GBP fall aggressively. We saw Prices drop 280 pips before Price retraced and closed the gap by the end of trading on Friday night. Price however is still below a weekly fib level at 1.6276. The overall sentiment for this Pair is negative. We’ve seen a lot of bearish sentiment unfold over the past couple of months which has seen Price drop below the Monthly 200sma level which it had breached successfully at the start of 2014. Price are trading around the prior near term S&R level on the monthly at 1.6276 – which happens to be resistance level highs through out 2012. Dropping down to Weekly sees Price at the under side of 1.6276 – so this level takes on a bearish resistance level. So as long as Price remains below this level – keep looking lower is my thought pattern here. The 200sma on the Weekly chart now becomes a potential LT 1st target for me which is approx 240 pips away from where Price is trading right now.
Lets not forget that this week is a VERY IMPORTANT week for the United Kingdom of Great Britain. We have the Scottish Independence Vote this coming Thursday. There is a lot riding on Sterling with the outcome of that vote.
I’d keep an eye on any Sterling crosses. GBPUSD / EURGBP / GBPJPY / GBPAUD/ GBPNZD are the Major ones.
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