Today, on September 9th, the British Pound is gaining value against its American counterpart. The rally started after the statistical agencies of the United Kingdom revealed some of the economic figures, which came out strong. The figures testified to the active growth of the industrial production in the UK.
Still, the British Pound is currently experiencing a severe downward pressure caused by the fact that Scotland is planning to become independent from the rest of Greet Britain.
The political risks definitely make the national currency weaken. Most of the Scots are currently supporting the independence idea, even though the British economy seems to be growing at unprecedented rate.
The Scottish referendum on the independence from the rest of the UK is scheduled for September 18th. This referendum makes traders and investors worry about the fate of Great Britain and its national currency. If the referendum is a success, this may result the UK government resigning. In its turn, such an even will only increase the uncertainty and the downward pressure on the British Pound.
This is confirmed by the fact that last week we could witness the results of the preliminary survey, which showed that most of the citizens and residents of Scotland want their country to be independent. This triggered an even stronger downswing in the market of GBPUSD. At this point, the currency pair is trying to recover from it. That is why the market is still cautious about the recovery even amid strong manufacturing figures published recently. With that sad, any strengthening of the British Pound is likely to be inconsistent at least until the results of the forthcoming referendum are revealed.
The Pond stated going down on July 14th, after the currency pair hit a major high (the high of 2014) at 1,7190. A break below a major psychological low at 1.6200 contributed to a further decline. As a result, the price hit the lowest point since November 2013.
GBPUSD
According to the trading members of Masterforex-V Academy, the fundamentals and technicals combined are currently telling us that GBPUSD is determined to head for 1.6000, another major level of support.
In order to suspend the downtrend, it is necessary to complete the previous move, which is possible after breaking and consolidating above 1,6186 and 1,6321. In order to suspend the entire bearish tendency and to reverse it, the bulls will have to make the price break above 1.6464.
According to the Binary Options Department of Masterforex-V Academy, GBPUSD is suitable for going short by purchasing pt options after recoveries. The optimal expiry time is 1,5 hours.
