Forex analysis - 2025-02-25 (23:55)

Forex data GBP/USD
Date : 2025-02-25
Opening : 1.26177
Higher up: 1.26777
Below: 1.26054
Closing : 1.26660

Economic news :
GBP/USD Forecast Turns Negative Amid US Inflation, Tariffs
Dollar Weakens Despite Hawkish Fed And Fresh Tariff Warnings
World Markets Trade On A Mixed Note

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

#### 1. **Summary of the Day's Data
- Open:** 1.26177
- Higher:** 1.26777
- Lowest:** 1.26054
- fence:** 1.26660

#### 2. **Current Trend
The GBP/USD pair rose slightly on the day, opening at 1.26177 and closing at 1.26660. Volatility was moderate, with a spread between highs and lows of 72 pips. The current trend seems to indicate an attempt to recover from earlier downward pressure.

#### 3. **Impact of Economic News
News plays a key role in today's market movements:

- US Inflation and Tariffs:** Concerns about US inflation and new threats of tariffs are having a negative impact on the US dollar. This has contributed to some weakening of the dollar, allowing sterling to strengthen slightly against the dollar.

- Fed Hawkish Stance:** Despite firm monetary policy from the Fed, the dollar is failing to maintain its strength, which could be due to wider concerns about the global economy and trade policy.

- Global Mixed Markets:** Varied performance in global markets reflects general uncertainty, which can make currency movements more erratic. This could explain why GBP/USD has managed to rally despite mixed fundamentals.

#### 4. **Short term forecast**.
- Bullish scenario:** If concerns about tariffs and inflation continue to weaken the dollar, GBP/USD could test new resistance levels, potentially above 1.2700, especially if UK economic data remains stable or positive.

- Bearish scenario:** If inflationary pressures ease or if the Fed reinforces its hawkish stance, the dollar could regain ground. In that case, the pair could fall back towards support around 1.2600, or even lower.

- Factors to watch:** Investors should keep a close eye on Fed statements, US economic data (particularly inflation) and any new information on tariffs that could influence market sentiment.

In conclusion, the GBP/USD pair is currently showing resilience in the face of dollar weakness. However, increased volatility could be on the cards given the global economic uncertainties. Traders should remain alert to major economic news and technical signals as they navigate this complex environment.