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GBP/USD Remaining Bearish after the Vote

GBP/USD has been bearish since falling from the 1.7191 high on the year. Last week, price found support at 1.6052. Part of this decline was due to USD-strength, and also some soft UK data that implied a delay in the BoE's rate hike plan. Another factor was the uncertainty surrounding Scotland's vote for independence. 

As the vote drew near, traders bought up the GBP, perhaps anticipating a "NO" result from the polls. After the polls confirmed that Scotland has voted to remain in the UK, there is nothing else left to price in regarding this Scottish independence "risk". 

The GBP/USD has rebounded to 1.6524. In the daily chart you can see that cable essentially made a Fibonacci Retracement of 38.2%.

(GBP/USD Daily Chart 9/19)

The daily chart also shows the GBP/USD held below the falling trendline coming down from the 1.7191 high. The RSI also held below 60, and even 50, showing that the bearish momentum is maintained. GBP/USD is now at least neutral-bearish if not strictly bearish. In the short-term the 1.62 level is in sight. A break below that opens up the bearish continuation scenario with the 1.6052 low as well as the 1.60 handle in sight.