The Pound has forged a short covering bounce of roughly 250 points because of ideas that there might be a “no vote” on independence. However, the Pound was temporarily knocked back in the wake of UK Augustretail sales results that came in under expectations. In fact, an alarming drop in store sales fosters some residualconcern toward the growth pace in the UK, which in turn is being impacted by the Scottish referendum. If the”Yes” vote triumphs that probably thickens overhead resistance and increases the prospects of a resumption ofthe July through September downtrend, as the UK economy will have some fresh headwinds to deal with. We stillthink a ratio call play is an effective way to try and play for a potential bottom in the Pound ahead.
