Scottish Independence: Sterling Jumps Sharply as Early Results Put 'No' Votes Ahead

The pound rebounded sharply on Friday in Asia as early results of the Scottish referendum put the 'No' campaign in the lead.

All four of the 32 councils that declared results have voted against secession, and SNP deputy leader Nicola Sturgeon has already conceded - even though the official result is not likely to be announced until 7am BST.

The GBP/USD rose to as high as 1.6525 during early Asian trades, its highest since 2 September, and from its previous close of 1.6397.

The pound had been on a path of reversal after hitting a ten-month low of 1.6052 on 10 September, and since then, the UK currency has gained nearly 3% against the greenback.

The sterling had fallen sharply in the first week of the month following a YouGov poll that showed supporters of Scottish independence might gain majority.

The pound was the only currency that was resilient even to the sharp dollar rally on 17 September, when the Fed indicated US rates could be higher by the end of 2015.

GBP/USD Technicals

The pair have broken above the 38.2% Fibonacci retracement of the July-September selloff and are now targeting the 50% level at 1.6625. The 50-day simple moving average coming near at 1.6677 is likely to form a strong resistance zone with the 50% line.

Then come 1.6757, the 6.18% line, followed by 1.6920 and 1.6998 ahead of a retest of the July peak of 1.7192.

On the downside, the 23.6% level at 1.6325 is a key support, a break of which will weaken the recent reversal of the pair. 1.6162 will be a level to watch ahead of a retest of the 10 September low of 1.6052.