GBP/USD awaits range breakout on the UK Budget

USD better offered in Asia on Yellen and US politics
UK Budget in focus.

After a choppy session witnessed a day before, the GBP/USD pair makes another attempt to break-out from the 100-pips range trade seen so far this week, with all eyes set on the UK’s Autumn Forecast Statement for the next direction.

GBP/USD awaits fresh catalyst.

Despite the sideways movement, the spot remains better bid amid a broad subdued US dollar, after the Fed Chair Yellen raised doubts over weak inflation is transitory. Also, a fresh WSJ report cited that Robert Mueller's investigators probed Kushner’s interactions with foreign leaders, extended the US political saga, weighing down on Treasury yields and the buck.

Meanwhile, Cable also finds support from a better risk environment reflected upon by higher Asian equities and oil prices, while the latest report from FT that the EU and UK aim to strike the Brexit divorce deal within 3 weeks, and keeps the buoyant tone intact behind the GBP.

Focus now shifts towards the UK Budget release due later on the day, with the ING FX Strategy Research noting, "The stage is set for Chancellor Hammond to showcase his vision of a post-Brexit economy in this week's Budget (Wed) and despite being hamstrung by a weaker set of OBR fiscal forecasts, it's clear that the global investment community are in dire need of some Churchillian-like words of inspiration over the future of Britain. We like GBP/USD upside and eye 1.3400 on a well-received Budget."

GBP/USD Technical Levels

Valeria Bednarik, Chief Analyst at FXStreet, noted: “The GBP/USD pair held above the daily descendant trend line broken late last week, but the potential upward is limited according to the 4 hours chart, as the price keeps pressuring a bullish 20 SMA, while technical indicators lost upward strength and settled near their mid-lines, directionless. Support levels: 1.3195 1.3160 1.3130. Resistance levels: 1.3260 1.3300 1.3340.”

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.