Forex analysis - 2025-02-28 (00:55)

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**.

**Date:** 28 February 2025

**Market data summary:**
- Open:** 1.26001
- Higher:** 1.26220
- Lower:** 1.25589
- Closing:** 1.25740

**Detailed analysis:**

1. **Current trend:**
The GBP/USD pair showed a downward trend during this session, closing at 1.25740 after opening at 1.26001. The downward movement was supported by volatility in the intraday range, with a low of 1.25589. This pattern indicates significant selling pressure that dominated the market, dragging the pair to a ten-day low.

2. **Impact of economic news:**
- Collapsing alliances:** Political or economic instability, symbolised by collapsing alliances, can create uncertainty in the markets, driving investors to seek safe havens such as the US dollar. This has probably contributed to sterling's weakness.
- Trade worries, technology rout and PCE concerns:** These factors have amplified market nervousness. Concerns about trade and technology can influence capital flows, while fears about US consumer price indexes (CPI) can fuel speculation about the Fed's monetary policies, strengthening the dollar.
- The US dollar remained stable, putting further pressure on the GBP/USD pair and contributing to its decline.

3. **Short-term forecasts:**
- Bearish scenario:** If economic and political uncertainty persists, pressure on the pound could increase, leading to further declines towards short-term technical support, potentially around 1.25500.
- Bullish scenario:** A stabilisation of economic concerns or renewed confidence in sterling could reverse the current trend. A rebound could aim to retest the resistance levels around 1.26000 to 1.26200.
- Factors to watch:** Investors should keep a close eye on geopolitical developments, economic policy announcements in the UK and US, and key economic data that could influence monetary policy expectations.

In summary, the current downtrend in GBP/USD is being driven by a combination of economic and geopolitical factors. Traders should keep a close eye on news and economic data to assess the pair's future direction.