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"There is a general perception in the market that Scotland breaking away as an independent country will lead to a higher debt burden to the U.K. and that is negative for the pound."
- Rabobank International (based on Bloomberg)
Pair's Outlook
Strong Dollar does not allow the Pound to commence a recovery, which is implied by the monthly technical indicators. And even though considering the current downward momentum the chances are slim, the Sterling may try to rally by using the 2014 low at 1.6250 as a springboard. In case this support is violated, there will hardly be any levels capable of halting the sell-off until the exchange rate descends down to the 2013 Q4 low at 1.5850.
Traders' Sentiment
The bulls have enhanced their advantage over the bears, being that the former now take up 66% o the market. Concerning the orders placed 100 pips from the spot, there is no difference between the amounts of buy (46%) and sell (54%) ones.
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