Taxes postponed-What does this mean for the GBP/USD?
Covid-19 continues to bring damage to the UK economy and the govenrment is responding with fiscal policy read on to see what is next for the GBP/USD
As the covid-19 pandemic continues to grow, British Chancellor Rishi Sunak has decided to postpone plans of tax increases in the March budget due to the continued economic crisis caused by the pandemic. However, it was also mentioned that the tax increases will only be delayed until August 2021.
There have also been reports regarding the £4.6 billion ($6.2 billion) support package, which is in place to support small businesses after they struggle through Britain's third lockdown, of being extended past the April deadline which is currently the expected end date.
Despite this, the RSI shows upside momentum for GBP/USD. The next support level is at the 1.331 mark, failing that trendline lies just below.