FxWirePro: GBP/USD trades flat, market eyes UK 2018 budget

• Cable hits 1- ½ month high at 1.32794 after UK is expected to increase Brexit bill figure. The news is that U.K is set to increase its divorce settlement offer to EU. Market awaits UK Autumn forecast statement on 2018 budget for further direction. The chancellor Philip Hammond will deliver most crucial budget against a backdrop of weak growth and Brexit worries. The data released yesterday shows that government borrowing rose by more than £500 million. Widening UK budget deficit points to weaker economy and this will limit chancellor’s spending power.
   
• The pair is consolidating after breaking high of 1.3230 level. Any break above 1.3380 will take the pair to next level till 1.3400/1.3500. Short term bullish invalidation only below 1.30280.
   
• On the lower side, near term support is around 1.31750 and any break below will drag the pair to next level till 1.3130/1.3100/1.3060/1.30270.

It is good to buy on dips around 1.3230 with SL around 1.3170 for the TP of 1.3300/1.3380.