Forex analysis - 2025-02-28 (09:57)

Forex data GBP/USD
Date : 2025-02-28
Opening : 1.26001
Higher up: 1.26220
Below: 1.25589
Closing : 1.25740

Economic news :
Cable falls to a ten-day low in a sharp turn as alliances begin to crumble
Trade Jitters, Tech Rout And PCE Worries Hit Market Sentiment
ForexLive European FX news wrap: Dollar remains steady going into February home straight

Detailed analysis:
**Full analysis of the GBP/USD Forex market**.

**Current trend:**
The GBP/USD pair showed a downward trend on the day in question, opening at 1.26001 and closing at 1.25740. The overall movement shows selling pressure on sterling against the US dollar, which is also corroborated by the fact that the price reached a low of 1.25589. The pair reached a high of 1.26220, but failed to hold these levels, indicating a lack of bullish conviction.

**Impact of economic news:**
Economic news has had a significant impact on the GBP/USD pair. The headline "Cable falls to a ten-day low in a sharp turn as alliances begin to crumble" suggests political or economic uncertainties affecting sterling. This could be due to changes in political or economic alliances which increase uncertainty and volatility in the market. In addition, the "Trade Jitters, Tech Rout And PCE Worries" indicate a general nervousness in the market linked to trade tensions, fluctuations in the technology sector and concerns about the US consumer price index (PCE). These factors could reinforce the dollar as a safe haven, putting further pressure on GBP/USD.

**Short-term forecasts:**
There are several possible scenarios for future sessions:

1. **If political and economic uncertainties persist, pressure on sterling could continue, pushing the pair to new lows. Traders could watch the support level around 1.25500 for signs of reversal or continuation.

2. **Technical rebound:** After a significant fall, a technical rebound could occur, especially if the market perceives a stabilisation or easing of the tensions mentioned. This could see the pair move back towards resistance around 1.26000 - 1.26200.

3. **Increased volatility:** Given current risk factors, increased volatility is likely. Traders should be prepared for sharp movements in response to economic news or unexpected political announcements.

In conclusion, although the current bias appears to be bearish, future movements in the GBP/USD pair will depend heavily on developments in the economic and political conditions mentioned. Investors should keep a close eye on the news and technical indicators to adjust their strategies accordingly.