The Pound weakened more against the dollar and most other currencies on Monday as a weekend poll found that the support for independence in Scotland now includes the majority. The pound came under heavy selling pressure after a YouGov/Sunday Times poll found over the weekend that 51% in Scotland favored voting for independence from the U.K. in a referendum set to take place on Sept. 18. Uncertainty as to what currency a newly independent Scotland would adopt, how much U.K. debt it would assume and what steps London would take to keep its northern neighbor in the fold sent investors avoiding sterling on Monday.
The dollar, meanwhile, took back losses stemming from a weak August jobs data.On Friday, data revealed the U.S. economy added 142,000 jobs in August, far less than the expected increase of 225,000.The greenback later recovered, as the August jobs report tends to be subject to hefty revisions.
Intraday bias remains on the downside as 21 and 55 EMA trend indicators are crossed downward in the 1 hour, 4 hours, Daily and Weekly charts signalling the continuation of the bearish trend established since 3 months now. SSRC, Stochastic, RSI and MACD Oscillator indicators are showing bearish momentum is still intact, so am expecting further decline to 1.60547 supports (Weekly S2) in the short term picture. Another reason i believe the selling will continue in the pair is the price rejection seen on 21 EMA which happens to act as a support formed on the weekly S1.
A fundamental reports to closely watch out tomorrow in the pair is the GBP Manufacturing Production.