Forex analysis - 2025-03-21 (06:50)

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:
**Comprehensive analysis of the GBP/USD Forex market**.

**Current trends:**

The GBP/USD pair is showing downward pressure, as reflected by the close below the open. The day's high is relatively close to the open, suggesting an initial bullish attempt, but the drop to the low and the close below the open indicate a predominance of sellers on the day.

**Impact of Economic News:**

1. **Worry About Interest Rates and Growth** : Concerns about interest rates and economic growth are strongly influencing the GBP/USD pair. If the markets anticipate a rise in interest rates in the United States, this could strengthen the dollar against sterling, putting further downward pressure on the pair.

2. **Dollar Steady as Risk Sentiment Stays on Edge** : The dollar's stability, despite persistent risk sentiment, indicates that investors are taking refuge in safe assets, including the US dollar. This could keep pressure on sterling, especially in the absence of positive fundamentals for the UK.

3. **Markets Pivot from Tariffs to Monetary Policy** : The shift in focus from tariff markets to monetary policy means that the decisions of central banks, notably the Fed and the Bank of England, will play a crucial role in the GBP/USD pair's fortunes. Any indication of tighter monetary policy in the US could weaken the pound further.

**Short-term forecast:**

1. **Bullish scenario**: If the Bank of England adopts a more aggressive stance on interest rates or if positive UK economic data emerges, sterling could find support, leading to a rebound towards resistance levels around 1.29703.

2. **Bearish scenario**: Continued worries about UK economic growth, combined with tighter US monetary policy, could push the pair to new lows, with potential support around 1.28873 and below.

3. **Neutral scenario**: In the absence of any significant news or monetary policy moves, the pair could consolidate around its current closing level, with reduced volatility in the short term.

In conclusion, the GBP/USD pair is currently being influenced by global macroeconomic factors, including monetary policy and economic concerns. Traders should keep a close eye on central bank announcements and key economic indicators to anticipate future movements in the pair.