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• GBP/USD strengthened on Wednesday in volatile trade as Britain's finance minister Rachel Reeves delivered a highly-anticipated budget.
• British finance minister Rachel Reeves unveiled a tax-heavy budget on Wednesday to create more room to meet borrowing targets.
• The outcome was driven by over £26 billion in new tax hikes, coming just a year after Reeves imposed £40 billion in increases the largest since the 1990s despite earlier pledges they would be a one-off.
•The country's fiscal watchdog, the Office for Budget Responsibility, cut its forecasts for growth in the British economy over the coming years.
• Technical signals are strongly bullish as RSI is at 53, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.3247( 50%fib), any close above will push the pair towards 1.3300( Psychological level)
• Strong support is seen at 1.3130(SMA 20) and break below could take the pair towards 1.3022 (23.6%fib).
Recommendation: Good to buy around 1.3200, with stop loss of 1.3130 and target price of 1.3300
