The Pound Sterling (GBP) is unchanged on the day as local markets slip into a holding pattern ahead of Wednesday’s budget, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

GBP consolidates on the day

“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.”

“Cable is holding a trading range below 1.30. The short-term pattern of trade lends itself to a potentially bullish resolution of the recent trading range. Spot gains above 1.3005 resistance will add to the positive short-term tone on the intraday chart that developed late last week following the pound’s reversal from 1.2910 (now support).”

“Gains through the low 1.30s target a push on to 1.3070/75.”