Forex analysis - 2025-02-28 (15:57)

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:
**Comprehensive analysis of the GBP/USD Forex market**.

**Date:** 2025-02-28

**Data Summary:**
- Open:** 1.26001
- Higher:** 1.26220
- Lower:** 1.25589
- Closing:** 1.25740

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

**Detailed analysis:**

1. **Current trend:**
- The GBP/USD pair showed a downward trend during the session, closing at 1.25740 after opening at 1.26001. The fall to a ten-day low suggests increased selling pressure on sterling.
- This pressure could be attributed to political and economic uncertainties, as suggested by the news that alliances are beginning to crumble.

2. **Impact of Economic News:**
- Recent economic news has had a negative impact on the GBP/USD pair. Trade fears and the downturn in the technology sector have contributed to risk aversion, favouring the US dollar as a safe haven.
- In addition, concerns about the Personal Consumption Expenditure (PCE) price index, a key indicator of inflation, reinforced investor caution, leading to increased demand for the dollar.

3. **Short-term forecasts:**
- Bearish scenario:** If political uncertainty continues to intensify and US economic data remains robust, pressure on sterling could continue, pushing the pair towards support at 1.25500.
- A stabilisation or improvement in political and economic relations in the UK could offer sterling some respite. If investors perceive a resolution to the trade jitters and a stabilisation in the technology sector, the pair could rebound towards resistance at 1.26200.
- Factors to watch:** Upcoming UK economic data, notably the PMIs, as well as US inflation and employment data, will play a crucial role in the pair's performance.

In conclusion, the GBP/USD pair is currently being influenced by external and internal factors that favour the US dollar. Investors will need to keep a close eye on political developments and key economic indicators to anticipate future movements.