Forex: GBP/USD around 1.5150 ahead of UK Budget Report

FXstreet.com (Barcelona) - The GBP/USD rallied as investors priced in the actual voting process and opinions of the MPC in the BoE March meeting minutes. The pair jumped from 1.5030 to the 1.5150 area. However, volatility might not be over yet, as the UK budget report is still to come, at 12.30 GMT.

In regard to the 2013-2014 Budget, TD Securities broke it into three categories: “1) Any changes to the BoE mandate—we wouldn’t expect anything concrete to be announced today but would expect some kind of statement that the mandate is to be examined. 2) Enhancements to FLS—shouldn’t be particularly market moving. 3) Any further growth supportive policies—these are fairly light on the ground and are likely to include increases to the personal allowance, reductions in corporation taxes, bringing forward the flat rate pension by a year and increased childcare support—most have been leaked to the press already so shouldn’t have too much market impact”, wrote analyst Alvin Pontoh.

UBS analysts are bearish: “A closing cross lower in momentum would signal resumption of the bear trend. Support is at 1.5004 ahead of 1.4832”, wrote analyst Gareth Berry, pointing to resistance at 1.5199.