UK Chancellor of the Exchequer Phillip Hammond delivered the budget in the British parliament. He says that the economy is confounding those who talk it down. However, the lower growth forecasts are sending the pound lower, to 1.3225 1.3214.
GBP/USD was trading around 1.3250 ahead of the speech, entrenched in the recent range: between 1.3220 to 1.3270. Further resistance awaits at 1.3320, which is the top of the range. Further support is at 1.3180.
Some points from his speech:
Hammond goes on and on to describe new plans and initiatives by the government, which are not market-moving. The lower forecasts are taking their toll, even though they are not a huge surprise. We already know that the economy has slowed down significantly in 2017.
Brexit took its time but now it is taking its toll.
Here is the slide on the pound/dollar chart:
