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GBP/USD advances towards 1.1400 on UK’s reverse tax cut move, US NFP in focus
The GBP/USD pair is gathering momentum in the early Tokyo session to cross Monday’s high at 1.1334. The cable has been strengthened after witnessing a north-side break of the consolidation formed in a 1.1029-1.1232 range. The asset is expected to hit the critical resistance of 1.1400 sooner as the UK government’s U-turn move on tax cuts has infused fresh blood into the pound bulls.
GBP/USD hits weekly high following tax cut U-turn, WTI Crude hits twelve-day high on Monday [Video]
The British Pound rebounded on Monday, as the government scrapped plans to lower the top rate of tax. Last week, Chancellor Kwasi Kwarteng lowered the top rate of tax from 45% – 40%, which would have been the lowest rate for top earners in the G-7. However, following the reaction on markets, with GBPUSD falling to a historical low, he stated today, “We get it, and we have listened”.