Forex analysis - 2025-02-25 (17:52)

Forex data GBP/USD
Date : 2025-02-25
Opening : 1.26177
Higher up: 1.26777
Below: 1.26054
Closing : 1.26553

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

### Market Context

The GBP/USD pair showed some volatility during the session on 25 February 2025, with an opening at 1.26177, a high at 1.26777, a low at 1.26054, and a close at 1.26553. This movement reflects a slight appreciation in sterling against the US dollar over the day.

### Current trend

The current trend for the GBP/USD pair appears to be bullish in the short term, as evidenced by the closing move above the opening price. This appreciation could be attributed to several underlying factors, including the weakening of the US dollar.

### Impact of Economic News

1. **Dollar Weakens Despite Hawkish Fed and Fresh Tariff Warnings**: The US dollar is weakening despite a hawkish stance from the Federal Reserve, which could normally strengthen the dollar through expectations of higher interest rates. However, fresh threats of tariffs could weigh on investor confidence and weaken the dollar, benefiting sterling.

2. **World Markets Trade On A Mixed Note**: Global markets are performing mixed, which could indicate global uncertainty. This uncertainty could favour currencies perceived as more stable or benefiting from better short-term economic prospects, such as sterling in this context.

3. **Wipro Limited (WIT): Among the Best Low Priced Stocks to Invest In Now**: Although this news does not directly concern Forex, it may reflect an increased interest in low-priced investments, which could indirectly influence capital flows and therefore exchange rates.

### Short-Term Forecasts

There are several possible scenarios for future sessions:

1. **Bullish scenario**: If the dollar continues to weaken due to economic or geopolitical concerns, GBP/USD could continue to appreciate, potentially testing higher resistance levels around 1.2700.

2. **Bearish scenario**: If the economic or political news changes in favour of the dollar (for example, positive clarifications on tariffs or strong US economic data), we could see a downward correction towards the support levels around 1.2600.

3. **Sideways Scenario**: If global market uncertainty continues, the pair could stabilise around the current closing level, with limited moves between 1.2600 and 1.2670.

### Conclusion

Traders should keep a close eye on economic and political developments, particularly those relating to monetary policy and trade tensions, which could influence the direction of the GBP/USD pair. Technical analysis, combined with vigilance on economic news, will be crucial to navigating this market environment.