GBP/USD turns bullish as focus shifts to US data, UK budget

GBP/USD Forecast: Pound Sterling turns bullish as focus shifts to US data, UK budget

Following Monday’s choppy action, GBP/USD gained traction and closed in positive territory on Tuesday. The pair stays in a consolidation phase above 1.3000 in the European session on Wednesday as market focus shifts to key macroeconomic data releases from the US and the UK budget announcement.

UK Chancellor Rachel Reeves will unveil the Autumn Budget later in the day, which is expected to include tax rises and spending cuts. Previewing the potential market reaction to the UK budget announcement, “Chancellor Reeves is expected to loosen fiscal policy somewhat and if she manages to pull that off and maintain credibility with investors, the GBP might benefit,” Scotiabank’s Chief FX Strategist Shaun Osborne said in a recently published report. Read more…

GBP/USD Price Forecast: Remains capped below the 100-period EMA, UK Autumn Budget in focus

The GBP/USD pair trades in negative territory around 1.3005 on Wednesday during the early European trading hours. Investors will closely monitor the UK Autumn Budget 2024. The UK government is set to deliver Labour’s first budget in almost 15 years on Wednesday. Commerzbank analysts said that if the budget combines austerity with the hope of tackling long-term investment, “this should be positive for the pound as it would strengthen the U.K.’s long-term growth potential.”

GBP/USD keeps the bearish vibe on the 4-hour chart as the major pair is below the key 100-period Exponential Moving Average (EMA). Nonetheless, the Relative Strength Index (RSI) stands above the 50-midline near 57.60, indicating that further upside cannot be ruled out in the near term. Read more…