FxWirePro: GBP/USD extends losses, touches lowest level since April

• GBP/USD extends losing streak   on Friday as growing investor nervousness about the outlook for UK government finances weighed on pound.

• UK Finance Minister Rachel Reeves is under pressure over a rental dispute, will present her budget in late November.

• Reeves has little fiscal room to manoeuvre under her own budget rules to keep Britain’s finances on track.

• Rising expectations suggest Reeves may have to break election pledges and raise taxes as new forecasts point to a weaker economy.

• Markets currently see around a one in three chance of a 25 basis point BoE rate cut next week.

•   Immediate resistance is located at 1.3166(Daly high), any close above will push the pair towards 1.3252(38.2%fib)

•  Strong support is seen at 1.3080(50%fib) and break below could take the pair towards 1.3000(Psychological level).

  Recommendation: Good to sell  around 1.3150 , with stop loss of 1.3200 and target price of 1.3050