Forex analysis - 2025-02-26 (01:53)

Forex data GBP/USD
Date : 2025-02-26
Opening : 1.26717
Higher up: 1.26776
Below: 1.26705
Closing : 1.26745

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

#### Market Context
The GBP/USD pair showed moderate activity on 26 February 2025, with relatively limited price movements. Here is a detailed analysis of the key elements influencing this currency pair.

#### Technical Analysis
- Open:** 1.26717
- Highest:** 1.26776
- Lowest:** 1.26705
- Closing:** 1.26745

The GBP/USD pair showed little volatility during this trading session, with a range of just 7.1 pips between high and low. The close was slightly higher than the open, indicating slight upward pressure, but not enough to signal a strong trend.

#### Current Trend
The current trend for GBP/USD is neutral to slightly negative. Limited price movements suggest consolidation, probably awaiting further economic news or clearer direction. This could be due to uncertainty around economic policies and recent news.

#### Impact of Economic News
1. **US Inflation and Tariffs:** Negative forecasts for GBP/USD are influenced by concerns over US inflation and tariffs. Fears of rising inflation in the US may strengthen the dollar, although this is partly offset by warnings of new tariffs which weaken the dollar.

2. **Fed Hawkishness:** Despite the Fed's aggressive stance, the dollar weakened, which could be due to concerns about the economic impact of the tariffs. The markets seem to be in a holding pattern before reacting more strongly to the Fed's policies.

3. **World Markets Mixed:** Mixed global markets are contributing to general uncertainty. Investors could be cautious, seeking to avoid taking large positions before clarification on global economic policies.

#### Short-Term Forecasts
- Bullish scenario:** If tariff fears subside and US economic data continues to show signs of strength without excessive inflationary pressures, GBP/USD could enjoy a slight rebound.

- Bearish scenario:** On the other hand, if trade tensions worsen or US inflation accelerates unexpectedly, the dollar could strengthen, pushing GBP/USD lower. A break below support at 1.26705 could pave the way for further declines.

- Neutral scenario:** Consolidation could continue if economic news remains mixed and market players continue to wait for greater clarity.

In conclusion, GBP/USD currently appears to be trapped in a holding pattern, with limited price movement. The next few sessions could remain indecisive unless there is a major economic catalyst.