GBP/USD faces volatility ahead of UK Budget and US Jobs data

GBP/USD trades near 1.2680 in early European hours as markets brace for significant volatility from today's UK Autumn Budget announcement and US Jobless Claims data. The pound has shown resilience above the 1.2650 support level, though uncertainty surrounding Chancellor's fiscal measures could trigger sharp moves in either direction. Market participants are particularly focused on potential tax changes and spending commitments that could influence Bank of England's monetary policy outlook. Later in the US session, weekly Jobless Claims figures will provide fresh insights into labor market conditions, with economists expecting claims to remain near 220K. Technical indicators suggest GBP/USD is consolidating within a 1.2650-1.2720 range, with a breakout likely following the key risk events. Traders should prepare for heightened volatility as both events could significantly impact sterling's near-term trajectory against the dollar.