Forex analysis - 2025-02-26 (05:52)

Forex data GBP/USD
Date : 2025-02-26
Opening : 1.26717
Higher up: 1.26776
Below: 1.26425
Closing : 1.26429

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

#### Current Trend
GBP/USD was highly volatile, opening at 1.26717 and closing just below 1.26429. The fact that the close was close to the day's low (1.26425) suggests downward pressure on the market. This indicates a downward trend for this particular session, reinforced by the continued fall after the opening.

#### Impact of Economic News
1. **Negative forecasts for GBP/USD due to US Inflation and Tariffs** : Concerns about US inflation and new tariff threats may weaken sterling against the US dollar, as investors may seek refuge in more stable or dollar-denominated assets.

2. **Dollar weakens in the face of a hawkish Fed**: Although the Fed is adopting a hawkish stance, potentially indicating future rate hikes, the dollar has weakened. This could be due to mixed market sentiment or expectations already built into current prices.

3. **Global Markets in Mixed Score** : Global markets are reacting disparately to economic news, which can increase volatility in the Forex market. Global uncertainties often cause investors to re-evaluate their positions, impacting the GBP/USD pair.

#### Short-Term Forecasts
- Bearish scenario**: If trade tensions and inflation worries persist, the GBP could continue to weaken against the USD. A breach of support at 1.26425 could pave the way for a fall to lower levels, potentially around 1.2600.

- Bullish scenario**: In the event of positive data on the UK economy or easing on the tariff front, the pair could rebound. Immediate resistance lies around 1.26776. A breach above this level could signal a short-term trend reversal.

- Neutral scenario**: If economic news does not provide clear direction, the pair could oscillate in a narrow range between immediate support and resistance levels.

### Conclusion
Current economic factors favour a cautious approach. Traders should keep a close eye on developments concerning US inflation and tariff policies, as these will play a crucial role in the future direction of GBP/USD. Rigorous risk management is essential in this highly volatile environment.