GBP/USD Fails at 1.3200 for Second DayGBP/USDTASTYFX:GBPUSDtastyfxGBP/USD is trading lower on Friday after the U.K. government abandoned its planned income tax increases, a move that immediately raised concerns about how the Treasury will plug the emerging budget gap. Scrapping the tax increases leaves an estimated £20-30 billion shortfall that will need to be addressed in the Autumn Statement. Markets are already pricing wider risk premia around U.K. assets, with U.K. gilt yields rising across the curve to Sterling’s detriment. In the above chart, GBP/USD rates have once again failed to break above 1.3200, where both the May and July monthly lows were carved out. The pair is likewise struggling to sustain price action above its 20-day exponential moving average (EMA). Concurrently, each of the 20-, 50-, and 100-day EMAs have a negative rate of change, signifying sustained bearish momentum. Daily MACD remains below its signal line, while Slow Stochastics are dropping through their median line. Bears are in control as long as GBP/USD fails to sustain a daily close north of 1.3200.