• GBP/USD unchanged in Asia, recovers from an early 0.25% decline

• Under pressure after failing to sustain rally above 1.3000 last week

• Finance Minister Rachel Reeves delivers half-yearly budget update speech Wed

• Expected to announce belt-tightening after new jump in government borrowing

• GBP 2 bln civil service spending cuts eyed; fiscal rules to be adhered to

• BoE governor Andrew Bailey speaks Mon; UK inflation, final Q4 GDP due

• Support 1.2880-85, 1.2840-50, resistance 1.2950-55, 1.3000-10

• Friday range 1.28855-1.29695, Asia range 1.2883-1.2915
GBP:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)