Forex - GBP/USD rises as Osborne set to unveil austerity budget

Forex Pros – The pound rose against the U.S. dollar on Tuesday, clawing back up from a 3-day low as the U.K. chancellor of the exchequer, George Osborne, was set to unveil an emergency austerity budget.

GBP/USD gained 0.04% to hit 1.4764 during late Asian trade, after rising from 1.4724, the pair's lowest since last Thursday.

Cable was likely to find support at 1.4645, the low of June 17, and resistance at 1.5147, the high of May 6.

In the budget, Osborne will unveil a USD 30 billion package of tax hikes and spending cuts aimed at slashing the U.K. budget deficit, The Daily Telegraph reported. He is expected to strip millions of middle-income families of child-related benefits and target the wages of public sector workers, according to the British paper.

Sterling slid versus the euro, meanwhile, with EUR/GBP gaining 0.07% to reach 0.8349.

Later in the day, an industry group will release key data on existing U.S. home sales, a leading indicator of economic health.