• GBP/USD softer, slips through 200-hour SMA/EMA as dollar rebounds

• Negative sentiment over UK budget should see pair head lower into event

• Jump in government borrowing prompt gilts to underperform

• Spending cuts expected, likely to add to UK growth headwinds

• Consequently, a return to the 200-day MA at 1.28 looks in-play

• BoE decision did little to alter outlook. May cut remains the base case

• COMMENT-Dollar shorts are in a tricky position
gbpusd hourly chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)