GBP/USD Holds 1.3100 Ahead of Wednesday's Crucial UK Autumn Budget

GBP/USD maintains its position above the psychologically important 1.3100 level, trading at 1.3115 with minimal movement as markets await Wednesday's UK Autumn Budget announcement. Sterling traders are exercising caution ahead of Chancellor Rachel Reeves' first budget, which could include significant tax changes and spending adjustments affecting UK economic growth prospects. The pair has found support at 1.3080, with resistance capping gains at 1.3150 amid pre-event positioning. Market expectations center on potential increases to capital gains tax and changes to pension relief, which could impact investment flows into UK assets. Technical indicators suggest consolidation within a 1.3080-1.3150 range until the budget release provides directional clarity. The pound's reaction will depend heavily on the budget's perceived impact on UK growth and fiscal sustainability. Traders should prepare for increased volatility post-announcement, with a break above 1.3150 targeting 1.3200, while failure to hold 1.3080 could see a retreat to 1.3000.