Forex analysis - 2025-03-21 (15:52)

Forex data GBP/USD
Date : 2025-03-21
Opening : 1.29684
Higher up: 1.29703
Below: 1.28873
Closing : 1.29110

Economic news :
Markets Worry About Interest Rates, Growth
ForexLive European FX news wrap: Dollar steady as risk sentiment stays on edge
GBP/USD Forecast: Markets Pivot from Tariffs to Monetary Policy

Detailed analysis:
### Complete Forex Market Analysis - GBP/USD

#### 1. **Market context:**
The Forex market for the GBP/USD pair experienced a relatively volatile session on 21 March 2025, opening at 1.29684 and closing lower at 1.29110. The high for the day was 1.29703, while the low was 1.28873. This fluctuation reflects a degree of investor nervousness, probably influenced by economic news and uncertainties over monetary policy.

#### 2. **Current trend:**
The GBP/USD pair showed a slight downward trend during the session, closing below its opening level. This trend could be attributed to persistent fears over interest rates and economic growth. Investors appear to be cautious, which is translating into downward pressure on sterling against the US dollar.

#### 3. **Impact of Economic News:**
Recent economic news has focused on concerns about interest rates and economic growth. Markets are concerned about the future direction of monetary policy, particularly in the context of trade tensions that appear to be easing. The focus is now on monetary policy decisions, which could influence GBP/USD volatility.

- Markets and Interest Rates:** Speculation about potential interest rate hikes by the Bank of England or the US Federal Reserve could have a significant impact on the pair. A rise in US interest rates could strengthen the dollar, while a tighter monetary policy in the UK could support sterling.

- Risk sentiment:** Global risk sentiment remains fragile, keeping the dollar relatively stable against sterling. Investors are looking for safe-haven assets, which could continue to support the dollar in the short term.

#### 4. **Short-term forecast:**
Based on current data and economic developments :

- Bullish scenario:** If the Bank of England signals tighter monetary policy or if favourable UK economic data is released, sterling could strengthen, pushing GBP/USD higher. A return above the 1.29700 resistance level could signal a recovery.

- Conversely, if US economic data continues to surprise positively or if the Federal Reserve adopts a more aggressive stance on interest rates, the dollar could strengthen further. In that case, we could see a test of support at 1.28800 or even lower.

- Sideways scenario:** In the absence of any significant news or if trade tensions ease without any immediate impact on monetary policy, the pair could oscillate in a narrow range between 1.29000 and 1.29500.

#### Conclusion :
The GBP/USD pair is currently being influenced by complex macroeconomic factors, including monetary policy and global risk sentiment. Investors should remain alert to economic announcements and comments from central banks, as these could trigger significant moves in the market.