FxWirePro: GBP/AUD pares gains ahead of the UK Autumn Budget

• GBP/AUD initially gained  on Tuesday but gave up ground   investors were cautious   ahead of Britain's budget announcement. 

• Reeves will deliver her second annual budget on Wednesday, where she is expected to unveil another round of substantial tax hikes testing her Labour Party’s confidence and drawing the attention of a wary bond market.

•Finance Minister Rachel Reeves has spent the past year pledging to accelerate Britain’s economy, but growth has recently weakened amid concerns over further tax hikes in Wednesday’s budget.

• The government appears unlikely to raise income tax but is expected to target increases in several other levies in Wednesday's budget.

•Data in the U.S. showed retail sales fell short of expectations in September, while a separate report showed producer prices rebounded in September.

• Immediate resistance is located at 2.0440(Higher BB), any close above will push the pair towards 2.0511(50%fib).

• Immediate support is seen at 2.0274(38.2%fib) and break below could take the pair towards 2.0202(SMA 20).

Recommendation: Good to buy 2.0350 with stop loss of 2.0260  and target price of 2.0450