Forex analysis - 2025-02-28 (05:50)

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:
An analysis of the Forex market for the GBP/USD pair on 28 February 2025 reveals several key factors influencing its behaviour and outlook.

### Current trend

The GBP/USD pair showed notable volatility during the session of 28 February 2025, opening at 1.26001 and closing at 1.25740. The high reached was 1.26220, while the low was 1.25589. Closing lower than the opening indicates downward pressure during the day, reflecting a downward trend.

### Impact of Economic News

1. **Alliance Crisis:** News that alliances are beginning to crumble has a significant impact on market sentiment. This can indicate political or economic instability which increases uncertainty, driving investors into safe haven assets such as the US dollar, weighing on sterling.

2. **Trade and technology worries:** Trade worries and disruptions in the technology sector are contributing to an increased risk environment. These factors may affect investor confidence in riskier assets, including the pound, thereby strengthening the dollar.

3. **Dollar stability:** The mention of dollar stability at the end of February indicates that, despite the economic turbulence, the dollar is retaining its relative strength. This could be due to its traditional position as a safe haven.

### Short-Term Forecasts

Given current factors, there are several possible scenarios for the coming sessions:

- Continued Bearish Pressure:** If political and economic uncertainties persist, bearish pressure on the GBP/USD pair is likely to continue. Investors could continue to favour the dollar, pushing the pair to test lower support levels around 1.25500 or even 1.25000.

- Technical Rebound:** Alternatively, a technical rebound could occur if the pair finds solid support after the recent decline. This could be stimulated by profit-taking or renewed optimism if geopolitical or economic tensions ease.

- Economic Data Influence:** Upcoming economic releases, such as employment data from the UK or the US, could also play a crucial role. Better-than-expected figures could strengthen the pound or the dollar, influencing the direction of the pair.

To sum up, the GBP/USD pair is currently under pressure due to a confluence of economic and political factors. Investors should keep a close eye on economic and political developments to assess the pair's future direction.