Forex analysis - 2025-05-08 (07:50)

Forex data GBP/USD
Date : 2025-05-08
Opening : 1.32939
Higher up: 1.33562
Below: 1.32764
Closing : 1.32780

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 8 May 2025, it is important to take account of price movements, the economic context and recent news.

### Technical Analysis :

1. **Price movements:**
- Open:** 1.32939
- Higher:** 1.33562
- Lowest:** 1.32764
- Closing:** 1.32780

The fact that the pair closed slightly above its low for the day suggests moderate selling pressure. The movement between the day's highs and lows indicates notable volatility, but the return close to the opening price at the close suggests hesitation in the market.

2. **Current trend:**
- The GBP/USD pair appears to be in a consolidation phase after hitting a high of 1.33562. The close near the day's low could indicate a possible continuation of the downtrend in the short term, unless solid technical support is found.

### Impact of Economic News :

1. **Fed policy and trade tensions:**
- The Fed's interest rate policy is a major factor influencing the US dollar. Any indication of a rate change can have a direct impact on the GBP/USD pair.
- Trade talks between the United States and China are adding a layer of uncertainty, which may increase volatility on the currency markets.

2. **Impact on Sterling:**
- Trade tensions may affect perceptions of global risk, which could have an impact on sterling depending on how market sentiment develops.
- The UK's economic outlook and the Bank of England's monetary policies will play a crucial role in the pair's future.

### Short Term Forecast :

1. **Possible scenarios:**
- Bullish scenario:** If the trade talks have a positive outcome and the Fed adopts an accommodating policy, this could strengthen sterling against the dollar, pushing the GBP/USD to higher levels.
- Bearish scenario:** If the Fed signals an interest rate hike or if trade tensions intensify, this could strengthen the dollar, causing GBP/USD to fall.

2. **Technical levels to be monitored:**
- Support:** The 1.32764 level (today's low) is immediate support. A break below it could pave the way for a fall to lower levels.
- Resistance:** The 1.33562 level (high for the day) is key resistance. A breach above it could signal a bullish recovery.

In conclusion, traders should keep a close eye on economic developments, particularly the Fed's decisions and the outcome of trade talks, as these will play a decisive role in the future performance of GBP/USD.