Scots voted to stay in the UK, GBPUSD surges and remains a buy on dips

The British pound was seen trading higher against almost all major currencies, as the voting results are out, which suggests that the Scotland would stay in the UK. This might be very positive for the British pound in the medium term, and that is the same reason why I think we should be looking for possible buying opportunity.

There is a bullish trend line formed on the hourly chart of the GBPUSD pair as can be seen below. There is also a major support around the 1.6380-60 level, which also coincides with the highlighted trend line. So, if the pair corrects lower from the current levels, trades closer to the mentioned support area, makes a stop and forms a bullish divergence, then we can enter into a buy trade. Remember, avoid chasing it from the current levels, as a correction is likely in the short term.

Initial target should be around the 1.6540 level, and final target could be around the 1.6600 levels. Stop should be placed below the trend line support area.

Reviewing recent events and trades
Wednesday, it was an eventful day, as the US dollar surged higher against all major currencies after the fed interest rate decision. The fed opted for a touch hawkish tone this time around, which pushed the US dollar higher. The EURUSD pair dived below the 1.2900 level and headed towards the 1.2850 level. Moreover, the NZDUSD pair managed to recover some ground after the GDP data, which came just above the market’s expectation and registered a growth rate of 0.7%.

Fundamental Outlook for the day
Today, the German PPI data was released during the London session. The outcome was as expected, but more on the negative side. The EURUSD pair was seen trading lower after the release. The most important event for the day was the Scottish independence poll results. It was on the encouraging side, as the result was in favor of no independence. The GBPUSD pair surged higher during the Asian and London session. Moreover, the Canadian CPI data will be published during the NY session, which can cause a lot of moves in the Canadian dollar.

This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: GBPUSD, GBPCHF, AUDCAD, USDCAD, USDJPY, CADJPY, AUDJPY and NZDUSD.
Get it HERE: Vladimir’s Markets Forecast

Trade safe friends. Happy trading!

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