FOREX: British pound (GBP) Gaps Higher After Traders Take Profits on Scotland Vote

The British pound (GBP) gapped higher this week after traders booked major profits during Friday's North American session following Thursday's vote regarding Scottish independence. Voters rejected the bid for independence from the UK by a vote of 55%-to-45%, meaning Scotland's 307-year union with the United Kingdom is likely to remain intact for quite some time.

In this 5-minute GBP/USD chart, we can see heavy selling pressure on Friday during the European and North American sessions as traders booked profits one day after the vote. We can also see a gap Higher today as traders continued to evaluate headline risk from the vote.

We can also see heavy selling pressure on Friday in the EUR/GBP chart below, with this cross rate nearly closing Higher on the day on Friday.  Note the gap lower between Friday's Close and today's Open.

In our YouTube video, we look at Friday's sharp GBP selling pressure and we identify key upside targets in GBP/USD and key downside targets in EUR/GBP.

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