GBP: Best avoided today unless you are a professional GBP trader
The Scottish referendum voting booths will open in about 12 hours time and we can expect plenty of volatility in the GBP. My sense is that a No-to independence vote is pretty much built in and the market is happy to try buying GBP/USD at levels close to 1.60. This suggests that the market might be a little long and susceptible to panic.
How to trade it? Well firstly, I’d suggest a neutral bias, no clear view. When the market starts to react to certain events/news, we should see some decent trading opportunities as liquidity will be thin and we will get over-extensions. These over-shoots are likely to be more pronounced on any GBP-negative news, as the market is already somewhat long.
Stay flexible, and trade what you see in front of you. Good luck.