Forex analysis - 2025-03-05 (13:56)

Forex data GBP/USD
Date : 2025-03-05
Opening : 1.27927
Higher up: 1.27966
Below: 1.27825
Closing : 1.27910

Economic news :
Dollar struggles continue in European trading today
Gold Strengthens as US Dollar Weakens Under Tariff Pressure
Euro extends gains to near four-month highs

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

**1. Current Trend:**

The GBP/USD pair showed a slight fall on the day, opening at 1.27927 and closing slightly lower at 1.27910. Although the variation is not significant, it indicates moderate bearish pressure. The high for the day was 1.27966, showing that the pair attempted to move higher but encountered resistance. The low at 1.27825 indicates the support level at which buyers intervened to limit losses.

**2. impact of economic news:**

The current economic news shows a weak US dollar, which is generally favourable for the GBP/USD pair, as a fall in the dollar tends to push the pair higher. However, dollar weakness appears to be offset by other factors that are limiting GBP gains. For example, the strengthening euro could divert investors' attention from the GBP to the EUR, thus slowing the rise of the GBP/USD pair.

Pressure on the dollar from the tariffs mentioned in the news could continue to influence the GBP/USD pair in the coming days. The fact that gold is also rising on the back of dollar weakness indicates risk aversion among investors, which could affect currency movements.

**3. Short-term forecasts:**

- Bullish scenario:** If dollar weakness persists and the GBP manages to attract more investors, the pair could retest the resistance level around 1.2800. A break above this level could pave the way for moves towards 1.2850, especially if UK economic data is positive.

- Bearish scenario:** If tensions over tariffs ease and the dollar recovers, or if negative news emerges about the UK economy, the pair could slip below its current support. In that case, a return to 1.2750 would be conceivable.

- Given the low volatility observed, the pair could remain in a narrow range between 1.2780 and 1.2800, with limited movements as long as no new economic or geopolitical catalysts emerge.

To sum up, although the current trend is showing slight downward pressure, the persistent weakness of the dollar could offer opportunities for a recovery in the pair, provided that UK economic factors remain favourable. Investors should keep a close eye on economic developments and political announcements that could influence market movements.