Pound Sterling Price News and Forecast: GBP strengthens ahead of UK Spring Budget for fresh guidance

FXStreet Team FXStreet

GBP/USD Forecast: Pound Sterling turns bullish, eyes on UK budget

GBP/USD continues to edge higher and trades above 1.2700 after closing the third consecutive trading day in positive territory on Tuesday. The pair's near-term technical outlook points to a bullish tilt as investors await the UK budget and Federal Reserve (Fed) Chairman Jerome Powell's testimony.

UK Chancellor of the Exchequer Jeremy Hunt will present the Spring Budget on Wednesday. Hunt it expected to announce expansionary fiscal measures, including tax cuts. Although it's too early to say, expansionary measures could make the Bank of England's (BoE) job of taming inflation more difficult. Markets could see tax cuts as potentially being inflationary and start pricing in a delay in the BoE policy pivot, supporting the Pound Sterling. Read more...

Pound Sterling strengthens ahead of UK Spring Budget for fresh guidance

The Pound Sterling (GBP) strengthens slightly against the US Dollar in Wednesday’s European session ahead of the United Kingdom’s 2024 budget statement by the Chancellor of the Exchequer Jeremy Hunt. Investors will keenly watch the scope of fiscal stimulus as it could drastically impact the outlook on inflation and the interest rate outlook by the Bank of England (BoE).

Jeremy Hunt, who will present the budget from 12:30 GMT, needs to make a balancing act between measures to keep inflation at bay and cheering the public through tax cuts, with general elections expected later this year. Read more...

GBP/USD to press strong resistance at 1.2800/1.2825 – ING

Today sees UK Chancellor, Jeremy Hunt, present a pre-election budget. The Pound Sterling (GBP) is the only G10 currency to print positive total returns against the US Dollar (USD) this year. An expansionary UK budget would support the GBP, economists at ING say.

Some decent fiscal stimulus should only delay the Bank of England easing cycle (we currently pencil in August for the first cut) and support Sterling. Read more...

GBP/USD

Overview
Today last price	1.2707
Today Daily Change	0.0002
Today Daily Change %	0.02
Today daily open	1.2705

Trends
Daily SMA20	1.2637
Daily SMA50	1.2674
Daily SMA100	1.2564
Daily SMA200	1.258

Levels
Previous Daily High	1.2735
Previous Daily Low	1.2671
Previous Weekly High	1.27
Previous Weekly Low	1.26
Previous Monthly High	1.2773
Previous Monthly Low	1.2518
Daily Fibonacci 38.2%	1.2711
Daily Fibonacci 61.8%	1.2696
Daily Pivot Point S1	1.2673
Daily Pivot Point S2	1.264
Daily Pivot Point S3	1.2609
Daily Pivot Point R1	1.2736
Daily Pivot Point R2	1.2767
Daily Pivot Point R3	1.28

Author

FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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