The British Pound (GBP) is currently stable, trading around 1.2975, as UK markets await the upcoming budget announcement on Wednesday. According to Scotiabank’s Chief FX Strategist, Shaun Osborne, the market anticipates increased government spending, particularly in health services, alongside greater debt issuance, following Chancellor Reeves’s recent policy adjustments regarding how the government measures indebtedness.
Despite a rebound in the GBP late last week, momentum has not significantly picked up this week, with the currency hovering close to its 100-day moving average at 1.2974. There is potential for improvement, as a rise above the resistance level of 1.2995 could lead to gains towards the 1.3070/75 range. On the downside, support for the GBP is noted at 1.2910.


