The graph shows the progress of the Great Britain Pound (Sterling) against the US Dollar
over the past 5 years. It has been trending up and down within bands marked by Trend Lines
A and B. The Horizontal red line shows the position it held before the Scottish referendum on independence drove the price down. This slump, however, was just the continuation of an existing downtrend. The rejection of Independence has brought an upswing in the price. The strength of the American economy, and the political confusion over devolution of powers within the United Kingdom, however, will tend to continue the sentiment that supports the downtrend. Conclusion: it is unlikely that the present upswing will bring the price back to $1.66, held before the debate on Scottish independence started. The rally will soon run out of steam, allowing the downtrend to continue. Actually, an increase in interest rates in the UK could terminate the downtrend.