Forex analysis - 2025-02-26 (09:21)

February 26, 2025

Forex data GBP/USD
Date : 2025-02-26
Opening : 1.26717
Higher up: 1.26776
Below: 1.26350
Closing : 1.26570

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 foreign exchange market for the GBP/USD pair showed moderate volatility during the session of 26 February 2025, with movements between a high of 1.26776 and a low of 1.26350. The pair closed at 1.26570, slightly down on the opening price of 1.26717.

#### Current Trend
The current trend shows slight downward pressure on the GBP/USD pair, as reflected by the close below the opening price. Volatility over the course of the day has been relatively low, indicating a degree of indecision among investors as to the future direction of the market.

#### Impact of Economic News
Recent economic news has had a significant impact on the GBP/USD :

1. **Negative forecasts due to US inflation and tariffs** : Concerns about persistent US inflation and new tariff threats have contributed to bearish sentiment on the pound, as these factors could strengthen the US dollar as a safe haven.

2. **Dollar weakens despite hawkish Fed**: Although the Federal Reserve has adopted a hawkish tone, signalling potential interest rate hikes, the dollar has weakened. This could be due to the dollar being overvalued beforehand or to investors taking profits.

3. **Global Mixed Markets**: Mixed performance in global markets suggests widespread uncertainty, which may also influence the volatility and direction of GBP/USD.

#### Short-Term Forecasts
There are several possible scenarios for future sessions:

1. **Bullish scenario**: If the dollar continues to weaken despite the prospect of higher interest rates, sterling could recoup some of its recent losses, especially if UK economic data is positive.

2. **Bearish scenario**: If worries about US inflation and tariffs intensify, strengthening the dollar, the pair could continue to fall towards the next major support around 1.2600.

3. **Sideways scenario**: If markets remain indecisive, the pair could move in a narrow range, with resistance and support levels close to current levels.

#### Conclusion
The GBP/USD pair is currently being influenced by complex global economic factors, including US inflation, Fed policy and international trade developments. Traders should remain alert to economic and political news that could trigger significant market movements. Careful monitoring of UK and US economic releases will be crucial in anticipating future movements in the pair.

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