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GBP/USD out of oversold territory
When looking at the pound this week it has been hard to get away from discussing the implications of Scotland voting for independence. With this being the case, GBP/USD has been guided as much by referendum polls as it has by economic data.
Overnight the latest YouGov poll has shown that the ‘No’ vote has again taken the lead. This week has seen both Westminster and the City pay considerably more attention to what is happening in the Scottish referendum. This has led to a more proactive attitude from both politicians and companies as they have lobbied for those still undecided. The fact that a number of the major financial companies based in Scotland have voiced their fears that relocation into England might be a consequence of independence has contributed to the swing in sentiment.
Next week will see plenty of statements and counter statements over the possibility of Scotland retaining the pound, and this should ensure a negative weighting on GBP/USD.