Forex analysis - 2025-05-07 (22:01)

Forex data GBP/USD
Date : 2025-05-07
Opening : 1.33733
Higher up: 1.33772
Below: 1.32797
Closing : 1.32920

Economic news :
Global FX Market Summary: Fed, Interest Rate Policy, Tariff Impacts and Trade Tensions 7 May 2025
Markets Gear For Fed Decision, U.S.-China Trade Talks
GBP/USD Nears Key Breakout Point Amid Bullish Pattern

Detailed analysis:
To carry out a complete analysis of the GBP/USD forex market on 7 May 2025, we need to consider a number of factors, including price movements, economic news and short-term forecasts.

### Technical Analysis

1. **Price movements** :
- Open:** 1.33733
- Higher:** 1.33772
- Lowest:** 1.32797
- Closing:** 1.32920

The GBP/USD opened at 1.33733 and closed at 1.32920, indicating a decline for the day. The high at 1.33772 and low at 1.32797 show moderate volatility, with a range of 97 pips. Closing below the opening suggests selling pressure for the day.

2. **Current Trend** :
Today's downtrend could be influenced by economic and political factors. The proximity of the closing level to the day's low may indicate persistent weakness.

### Economic News

1. **Fed Decision and Interest Rate Policy** :
The markets are anticipating a decision by the Fed that could influence the US dollar. A rise in interest rates would tend to strengthen the dollar, putting further pressure on the GBP/USD pair.

2. **US-China Trade Negotiations** :
Ongoing trade talks between the US and China may have an indirect impact on GBP/USD. Increased tensions or negative results could strengthen the dollar as a safe-haven asset.

3. **Key Breakpoint for GBP/USD** :
Analysts point to a key breakpoint for the pair, which could suggest an opportunity for a reversal or continuation of the trend depending on the direction of the economic news.

### Short-Term Forecasts

1. **Bullish scenario** :
- If the Fed adopts a more accommodating approach than expected, or if the trade talks have a positive outcome, the pair could rebound towards the recent resistance level around 1.33772.
- The appearance of bullish technical motifs, such as candlestick formations indicating a reversal, could also support this scenario.

2. **Cashier scenario**:
- A decision by the Fed to raise rates, coupled with rising trade tensions, could see GBP/USD fall below immediate support at 1.32797.
- A break below this level could pave the way for a further fall towards lower support levels, potentially around 1.3200.

### Conclusion

The GBP/USD pair is currently showing signs of weakness, influenced by expectations regarding the Fed's monetary policy and developments in the US-China trade negotiations. Traders should keep a close eye on economic announcements and key technical levels to anticipate the pair's future movements.