FxWirePro: GBP/AUD struggles for direction ahead next week's UK budget

• GBP/AUD initially gained but gave up ground as investors await next week's UK budget announcement.  

• Signs of strain are emerging across UK businesses, households, and public finances as the budget approaches, with Finance Minister Rachel Reeves widely expected to raise taxes again.

• Figures released on Friday indicated that anxiety over the upcoming budget is dragging on the UK economy, underscoring the challenge for Reeves as she seeks to reduce borrowing while growth remains weak.

•British government borrowing costs jumped last week after reports suggested that Reeves, in a major policy shift, would drop plans to raise income tax in the upcoming budget following improved fiscal projections.

• Immediate resistance is located at 2.0401(Higher BB), any close above will push the pair towards 2.0461(50%fib).

• Immediate support is seen at 2.0227(38.2%fib) and break below could take the pair towards 2.0113(Nov 20th low).

Recommendation: Good to buy 2.0250 with stop loss of 2.0160  and target price of 2.0380