GBP/USD Forecast Today 27/03: Tests Support Again (Video)

2025-03-29 05:32:45

(MENAFN- Daily Forex)

The British pound has plunged against the US dollar, but it does look like we're at least trying to respect the bottom of the range that we have been in.
Later in the day, we're starting to see a little bit of buying, so that does give some hope here to continue the overall consolidation.
I should also point out that the euro is doing exactly the same thing. So, I think the sudden spike in the US dollar today had a lot of people freaked out.

But at the end of the day, I don't think it will continue. I don't know. Don't get me wrong. But I think it's a sign that it's very likely that US dollar strength is probably a fleeting thing. That does make sense because everybody is assuming that the United States is going to start cutting rates. And other countries around the world are coming out of recession. So that means that the relative performance should help.

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That being said, I think this is a situation where you need to be somewhat cautious, but I like the idea of it staying in the range that it's in currently. That means we could make a return to the 1.30 level, the 1.2875 level underneath and the 1.2850 level underneath both I think are support levels. And the way we're bouncing late in the day, I do think that does lend itself to good news. So, we'll have to wait and see.

EURUSD Chart by TradingView

But right now, I think we're in a situation where we're just going to continue to consolidate and work off some of this froth. I know that the 10-year yield earlier in the day was near the top of a pretty significant range. I have a feeling it spiked through there. I haven't checked. And fell again in the United States. And that's probably what's going on here. It does tend to cause a lot of algorithms and computers to start losing its mind.

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