FxWirePro: GBP/USD slips as UK Fiscal Concerns resurface

• GBP/USD slipped lower on Tuesday as renewed concerns over the UK’s challenging fiscal outlook weighed on sentiment.

• Britain’s budget watchdog is reportedly set to slash its key productivity forecast by a larger-than-expected 0.3 percentage points, according to people familiar with the matter — a move that could create a £20 billion ($26.8 billion) shortfall in public finances.

• The countdown to Chancellor Reeves’s November 26 budget is underway, with both tax increases and spending cuts expected to feature.

• Meanwhile, the Bank of England is expected to keep interest rates unchanged at 4.00% at its November 6 meeting, with a slight majority of economists surveyed   anticipating no further policy easing this year.

• Traders are still pricing in a 35% chance of a Bank of England rate cut at the next meeting, with money markets indicating expectations that the base rate will fall about 20 basis points below the current 4% level.

•   Immediate resistance is located at 1.3379( SMA 20), any close above will push the pair towards 1.3408(38.2%fib)

•  Strong support is seen at 1.3236 (Lower BB) and break below could take the pair towards 1.3140(23.6%fib).

  Recommendation: Good to sell around 1.3300 , with stop loss of 1.3380 and target price of 1.3220