GBP/USD steadies close to 1.3950 ahead of UK budget announcement on Wednesday
The price of sterling had hit a weekly high 1.4242 with a very firm rejection, putting in a large reversal after 5 waves of the uptrend.
GBP/USD is currently consolidating around the 1.3950 mark amid thin trading volumes with the Wednesday Asia Pacific session yet to get into full flow. Recent news that UK Finance Minister Rishi Sunak is set to extend Covid-19 support further than expected has not impacted FX markets at all but may support GBP as volumes pick up in the coming hours. As a reminder, the budget is set to be revealed tomorrow; Sunak will be delivering a speech before parliament after PMQs likely to start around 12:30GMT. GBP/USD closed Tuesday trade with modest 0.2% gains, having recovered from early European session lows of just above the 1.3850 mark to current levels around 1.3950.
GBP/USD Forecast: Nice comeback hints at further gains in the docket
The GBP/USD pair bottomed this Tuesday at 1.3856, recovering afterwards to close the day with gains in the 1.3970 price zone. The advance was the result of decreased dollar’s demand as government bond yields held within familiar levels for a second consecutive day. The UK macroeconomic calendar had nothing relevant to offer, as the country published the February Nationwide Price Index, which rose 6.9% YoY.
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