• GBP/AUD gained strength on Tuesday as sterling attracted bids ahead of a new British budget.
• Britain's new finance minister, Rachel Reeves, is set to announce potentially the largest tax increases in three decades on Wednesday.
• The Labour government is betting that its first budget after 14 years of Conservative rule can fund its election pledges without triggering the kind of bond market chaos that brought down former prime minister Liz Truss in 2022.
• Technically, the moving averages are indicating a up trend, while the Relative Strength Index (RSI) is s bullish at 70.
• Immediate resistance is located at 1.9860(23.6%fib), any close above will push the pair towards 1.9883(Higher BB).
• Immediate support is seen at 1.9731(38.2%fib) and break below could take the pair towards 1.9619(50%fib).
Recommendation: Good to buy around 1.9830, with stop loss of 1.9750 and target price of 1.9900,
