Forex. Pound/Dollar GBP/USD forecast for today, May 27, 2021
On Wednesday, the Pound/Dollar rate fell to the support level of 1.4120.
Foreign exchange market analysts still recommend buying the British currency, especially against the US Dollar, despite the restrained growth of the pair recently. The strengthening has slowed in part due to fears of the spread of the Indian strain of coronavirus in the UK. However, the vaccine is also effective against a new type of virus, and the vaccination process in the country is gaining momentum again. As a result, the impact on the economic recovery projected for this and next quarter should not be unduly negative. The pound traded within recent ranges against the Dollar and the euro on Wednesday, as a lack of new economic catalysts kept the currency in consolidation mode.
Sterling is the second best performing currency of the G10 countries against the Dollar this year. The pound has gained 3.4% since the start of the year and is second only to the Canadian dollar, which is pegged to commodities. This success was the result of investors' bet on the rapid resumption of the British economy. Last week, the third part of the phased opening began in the UK. Economic indicators such as retail sales are improving. Surveys of purchasing managers in various industries also show improvement.
Signals for trading GBP/USD currency pair
The forecast assumes an increase in the Pound/Dollar exchange rate to the levels of 1.4140, 1.4160 and 1.4200.