• GBP/USD initially gained on Friday but gave up ground as investors awaited first budget from the UK’s new government next week.
• UK's finance minister Rachel Reeves faces a tough task of raising the tax revenues needed to invest more in public services and new infrastructure. Further, a fresh report showed Reeves was also seeking to change fiscal rules.
• Adding to the slightly downbeat sentiment in the pound were surveys on Thursday that showed UK business activity was weaker than expected in the early part of this month.
• Technical signals are bearish as RSI is at 38, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.3029( 38.2%fib), any close above will push the pair towards 1.3110(50%fib)
• Strong support is seen at 1.2902(23.6%fib) and break below could take the pair towards 1.2860(Lower BB).
Recommendation: Good to sel around 1.2960, with stop loss of 1.3060 and target price of 1.2900
