Wednesday at 12:30 GMT the UK will be delivering its annual budget. 

The Chancellor at this stage is expected to push towards another round of spending to support businesses, jobs and boost the recovery.

The rumour mil has taxes as a maybe, with so much stimulus spending it makes sense that the corporate tax rate could increase to try and recoup a fill the big hole in the deficeit. 

Speculation on tax is high, with some thinking that corporate tax (current 19% - expected 23%) and captial gains taxes will be increased.

The big Q to consider is whether tax changes and spending will match. 

The second consideration is if tax changes will be implemented this early into the recovery of the UK economy.

Putting too much pressure on the relif packages will stifle the growth of the UK, so my thinking is that Chancellor Sunak knows this and will likley post pone tax rate hikes for in the future.

I prefer the position on EURGBp than I do on GBPUSD because of the contrast betweent the two economies.

On the GBPUSD side I am anticipating a long move to occur.

GBPUSD - Annual Budget back up position

Mar 03 2021

Take Profit +0.16%

Holding time 2hr

1.39660

Entry price

1.39890

Take profit price

1