Initial downside was seen yesterday as volatile trading continues. However, the market was unable to maintain levels beneath 1.6200 and by the close all losses were reversed and GBPUSD had filled the negative gap created by last week's open.
That area was not clearly exceeded, and the key 13 day average remains untested. These factors coupled with the uncertainty around the Scottish vote means caution must be applied but our signals are positive and so we look for the upside to develop with potential to 1.6311 and 1.6342.