Forex analysis - 2025-02-25 (13:43)

February 25, 2025

Forex data GBP/USD
Date : 2025-02-25
Opening : 1.26177
Higher up: 1.26620
Below: 1.26054
Closing : 1.26493

Economic news :
Dollar Weakens Despite Hawkish Fed And Fresh Tariff Warnings
World Markets Trade On A Mixed Note
Wipro Limited (WIT): Among the Best Low Priced Stocks to Invest In Now

Detailed analysis:
### Complete Forex Market Analysis - GBP/USD

#### 1. **Current trend:**
The GBP/USD pair showed a slight rise during the February 25, 2025 session. It opened at 1.26177, and closed at 1.26493, showing a modest appreciation in sterling against the US dollar. The high for the day was 1.26620, and the low was 1.26054, indicating moderate volatility over the session. This uptrend could be attributed to a weaker US dollar, as suggested by the economic news.

#### 2. **Impact of Economic News:**
- Dollar Weakens Despite Hawkish Fed And Fresh Tariff Warnings:** Despite aggressive monetary policy from the Fed, the US dollar has shown signs of weakness. This could be due to concerns about the economic impact of fresh tariff warnings, which could damage the US economic outlook. This weakness in the dollar has probably supported the rise in the GBP/USD pair.

- World Markets Trade On A Mixed Note:** The mixed performance of global markets reflects wider uncertainty that could affect currency movements. However, against this backdrop, sterling managed to strengthen slightly against the dollar.

- Wipro Limited (WIT): Among the Best Low Priced Stocks to Invest In Now:** Although this news is more focused on equities, it reflects an interest in low cost investments that can influence capital flows and, indirectly, currencies through general market sentiment.

#### 3. **Short-term forecast:**
- Bullish scenario:** If the dollar continues to weaken due to domestic economic concerns or trade tensions, GBP/USD could continue to rise. A break above the recent high of 1.26620 could pave the way for higher levels.

- Bearish scenario:** If the Fed reinforces its aggressive stance and tariff fears abate, the dollar could strengthen, pushing GBP/USD lower. A break below the low of 1.26054 could trigger a test of lower levels.

- Factors to watch:** Investors should pay close attention to Fed statements, developments in trade tensions, and any major economic data from the UK or US that could influence the pair's future direction.

In conclusion, although the GBP/USD pair has shown a slight uptrend, persistent economic uncertainty and geopolitical factors could lead to volatile movements in the short term. Traders should keep a close eye on economic news and monetary policy announcements to adjust their strategies accordingly.

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