The pound moved down against its major counterparts in the European session on Thursday, as U.K. Chancellor of Exchequer Jeremy Hunt unveiled a package of tax increases and spending cuts worth £55 billion and said that the economy is already in a recession.

In the autumn statement, Office for Budget Responsibility has estimated that borrowing would be 7.1 percent of GDP or £177 billion in this financial year.

The threshold at which higher earners start to pay the 45 percent rate will be reduced to £125,140 from £150,000.

Hunt said that the U.K. is now in recession, but the plan could lead to a shallower downturn, lower energy bills and higher long-term growth.

The economy is now forecast to grow by 4.2 percent for this year, compared to the previous outlook of 3.8 percent growth.

The gross domestic product is expected to contract by 1.4 percent next year, in contrast with a growth of 1.8 percent in the previous outlook.

The GBP/JPY pair fell to 165.18, from a high of 166.32 seen at 4 am ET. The pound is seen locating support around the 153.00 level.

The GBP/CHF pair retreated to 1.1199, following a 6-day high of 1.1297 seen at 3:30 am ET. On the downside, 1.10 is possibly found as its next support level.

The GBP/USD pair touched a 2-day low of 1.1763, after hitting a 2-day high of 1.1958 at 3:20 am ET. The pound may test support around the 1.15 level, if it drops further.

The pound dropped to 0.8769 against the euro, down from a 9-day high of 0.8695 it logged at 3:25 am ET. The pound is likely to find support around the 0.89 level.

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