Scotland Stays in the UK – GBP/USD and EUR/GBP Reactions

Scotland Stays in the UK - GBP/USD and EUR/GBP Reactions

The vote is in, and Scotland is staying in the United Kingdom. In the currency markets, the GBP was gaining heading into the vote, which reflected anticipation of a “NO” result. Now that the vote is over we are seeing GBP-faded. But what does it mean in the GBP/USD and EUR/GBP? Let’s take a look.

The GBP/USD rallied ahead of the vote, in anticipation that it will be a “NO”. Now that the polls have confirmed the no, the pound is sliding, and the GBP/USD is remaining bearish. It has the 1.62 handle in sight, then a break below that opens up the 1.6052 low and possibly even the 1.60 handle. EUR/GBP on the other hand is showing more GBP-strength, so it is remaining bearish, breaking below a 2-month consolidation to a new low on the year. If it can hold below the 0.7950 level, it should remain bearish with downside risk toward the 2012-low at 0.7764.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at