• GBP/USD gained some updise momentun on Monday but gains were limited as the market awaited the upcoming release of the UK budget on Oct. 30.
• GBP/USD bulls are facing a critical test with the release of UK Finance Minister Rachel Reeves' first budget, which is anticipated to emphasize tax increases and spending cuts to tackle significant pandemic-era deficits.
• At GMT 15:45, the pair was trading up 0.22 percent at 1.2990 ,rebounding from daily low.
• Technical signals are strongly bearish as RSI is at 42, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.2998( 11SMA), any close above will push the pair towards 1.3037(50%fib)
• Strong support is seen at 1.2978(38.2%fib) and break below could take the pair towards 1.2899(23.6% fib).
Recommendation: Good to sell around 1.3050, with stop loss of 1.3100 and target price of 1.2950
