• GBP/AUD trades in narrow range on Monday as investors were cautious ahead of Britain's budget announcement this week.
• On Wednesday, Finance Minister Rachel Reeves will present her long-awaited budget, seeking to bolster investor confidence in the government’s fiscal prudence while maintaining its commitment to avoid raising taxes on working households.
• Rachel Reeves, the finance minister, is expected to introduce tax increases worth tens of billions of pounds for the second time since the 2024 election, aiming to keep borrowing on track, avert a bond market backlash, and boost welfare expenditure..
• To avoid breaching her election promise on income tax, she is expected to introduce rises in a variety of alternative taxes.
• Immediate resistance is located at 2.0392(Higher BB), any close above will push the pair towards 2.0529(50%fib).
• Immediate support is seen at 2.0172(38.2%fib) and break below could take the pair towards 2.0072(61.8%fib).
Recommendation: Good to buy 2.0220 with stop loss of 2.0160 and target price of 2.0380
