In July, the Great British Pound started a downtrend against the US Dollar. This may have been sparked by fears of the outcome of the Scottish referendum on Independence, which takes place next Thursday. A tentative rebound was felt this week. Scottish Independence would not neessarily mean any great financial re-organisation. Both Scotland and England would continue as members of the European Union. Scotland is not likely to break with Sterling in the immediate future, although ultimate union with the Euro would be a possibility. Whatever the outcome of the referendum, ultimately it should have no impact on the value of Sterling or the FTSE. Logically, the present rebound should continue (and crash through the down-trend line). There is a possibility, however, that the graph will bounce off the down-trend line, break through weak Support Line B and continue to trend down until it meets longer-term Resistance Line A. One to watch, to see whether it will rise or fall.
