Forex analysis - 2025-02-28 (18:58)

Forex data GBP/USD
Date : 2025-02-28
Opening : 1.26001
Higher up: 1.26220
Below: 1.25724
Closing : 1.25920

Economic news :
Trade Jitters, Tech Rout And PCE Worries Hit Market Sentiment
ForexLive European FX news wrap: Dollar remains steady going into February home straight
US Dollar Rallies on Trump's Tariff Shock, FX Market Turns Defensive

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

#### Current Trend :
The GBP/USD pair showed slight volatility during the February 28, 2025 session, with an opening at 1.26001, a high at 1.26220, a low at 1.25724 and a close at 1.25920. The pair closed slightly lower, suggesting moderate selling pressure. This trend can be interpreted as consolidation in a support zone, which could indicate indecision in the market.

#### Impact of Economic News :
Several macroeconomic factors have influenced market sentiment:

1. **Trade Jitters:** Concerns about world trade, particularly trade tensions exacerbated by tariff policies, are having a significant impact on the market. These uncertainties are increasing volatility and pushing investors towards safe-haven assets, benefiting the US dollar.

2. **Tech Rout:** The fall in technology stocks can have a knock-on effect on global financial markets, impacting investor confidence and encouraging risk aversion. This reinforces the dollar as a safe haven, putting downward pressure on the GBP/USD pair.

3. **PCE Worries:** Concerns about the US Personal Consumption Expenditure (PCE) price index, a key indicator of inflation, have heightened expectations of tighter monetary policy from the Federal Reserve. A stronger dollar is the result of these expectations, which is weighing on sterling.

4. **Dollar rally following Trump's tariff shock:** The Trump administration's aggressive tariff policies have triggered a rally in the dollar, increasing demand for the US currency due to its safe-haven status.

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

1. **Bullish scenario:** If GBP/USD manages to hold above support around 1.25724 and trade tensions ease, a recovery could occur, with potential targets around 1.26220 and beyond.

2. **Bearish scenario:** If uncertainties over tariff policies persist and US economic data continue to support the dollar, the pair could test new lows below 1.25724, with targets around 1.25500.

3. **Neutral scenario:** The pair could continue to move in a narrow range if economic and political factors do not provide significant new catalysts, stabilising around the current closing level.

In conclusion, GBP/USD remains under the influence of global economic and political developments, with a particular focus on US tariff policies and key economic data. Traders should keep a close eye on economic announcements and geopolitical developments to adjust their strategies accordingly.