Scottish Independence: Pound Plummeting - Technical Analysis

The British pound has fallen to a 10-month low against the dollar following revelations that a pro-independence vote has taken the lead for the first time since the campaign began.

The GBP/USD has dropped below the 38.2% Fibonacci retracement of the one-year rally from last year July that came at 1.6280.

With the Moving Average Convergence Divergence (MACD) sharply below the zero line, the pair looks set for steeper falls. The immediate support line is the 50% level at 1.6000.

A break below the 1.6 mark will open doors to the 61.8% level at 1.5720 but 1.5965 may offer some support on the way. Further south, the levels to watch are 1.5400, 1.5100 and 1.5000 ahead of a retest of the July 2013 low of 1.4813.

On the higher side, the 1.6280 mark has turned a resistance and the next level is 1.6475 ahead of the 23.6% retracement of 1.6645. A break of that will weaken the downtrend and make further upsides easier.

The pair will then aim 1.6820 and 1.7000 ahead of a retest of this year's peak of 1.7192 touched in July.

The percentage of voters in favour of Scotland breaking from the UK rose to 51% in the YouGov Plc poll, done for the Sunday Times, just two weeks ahead of the referendum.