The Next day Pancho became a severe tropical cyclone on the Australian scale, with Pancho rapidly intensified into a minimal Category four cyclone on the Australian scale on 27 March. However, during the 28th, Tropical Cyclone Pancho entered an area of increasing vertical wind shear and cooler sea surface temperatures and within a few hours it was downgraded back to a Category 2 cyclone on the Australian scale. The cyclone then weakened back to a tropical low about 300 kilometres south-west of the Western Australian Gascoyne coast with gale-force winds remaining south of the low. with both TCWC Perth and the JTWC issuing their final warnings on Pancho that day.