Forex trading forecast for today. Pound/Dollar (GBP/USD)
On Thursday, the Pound/Dollar (GBP/USD) pair updated local highs and reached 1.3830.
The yield on 10-year US government bonds fell from the highest values in 14 months to the level of 1.7%. This, in turn, forced buyers of USD to take a defensive position and provided some support to the Pound/Dollar (GBP/USD) pair. The Pound (GBP) received an additional boost after the index of business activity in the UK manufacturing sector was revised upward to 58.9 for March against the forecast 57.9. Against the backdrop of the rapid rollout of vaccination in the UK and the gradual resumption of restrictions, the indicators confirm the prospects for a rapid recovery of the country's economy.
Nevertheless, expectations of even faster growth in the US economy after the crisis helped to limit any significant decline in the dollar against the Pound. Investors remain optimistic about the outlook for the US economy amid the impressive pace of coronavirus vaccination and US President Joe Biden's new bailout plan. The exchange rate of the Pound/Dollar (GBP/USD) pair pushed off from the local minimum and probably completed a deep correction phase. Most likely, the quotes will consolidate in the range of 1.37-1.40 in the coming weeks. In the future, the fundamental data will determine the dynamics of the pair.
In the forecast, I expect the Pound/Dollar (GBP/USD) exchange rate to decline to 1.3750.