Forex analysis - 2025-05-08 (12:49)

Forex data GBP/USD
Date : 2025-05-08
Opening : 1.32939
Higher up: 1.33562
Below: 1.32400
Closing : 1.33140

Economic news :
BOE cuts bank rate by 25 bps to 4.25%, as expected
Gold Prices Rise Amid Fed Rate Pause and Trade Uncertainty
US Dollar Rises Ahead of US-UK Trade Deal and Post-Fed Stagflation Fears

Detailed analysis:
To analyse the Forex market for the GBP/USD pair on 8 May 2025, we need to take into account price movements and recent economic news.

### Technical Analysis

- Opening at 1.32939 and closing at 1.33140:** The pair closed slightly higher than it opened, indicating slight intraday upward pressure.
- High at 1.33562 and low at 1.32400:** Volatility was present, with a range of 116 pips between the day's high and low. This shows a relatively active session, influenced by economic news.
- Current trend:** The close above the open suggests a short-term uptrend, albeit moderate.

### Impact of Economic News

1. **BOE cuts key rate by 25 basis points to 4.25%:**
- This reduction was expected, so its immediate impact on the market was limited. However, a cut in interest rates can traditionally weaken the currency concerned, in this case sterling, because of lower yields for investors. This could contribute to downward pressure on the GBP.

2. **Rising gold prices and Fed pause:**
- Rising prices for gold, often seen as a safe haven, may signal economic uncertainty. A pause in the Fed's rate hike may signal concerns about economic growth, influencing demand for the US dollar.

3. **Appreciation of the US dollar:**
- With the US dollar strengthening in anticipation of a trade deal between the US and the UK, as well as fears of post-Fed stagflation, this may put downward pressure on GBP/USD.

### Short-Term Forecasts

- Bullish scenario:** If sterling manages to maintain its strength despite the BOE rate cut, and if the trade agreement brings an optimistic outlook for economic relations between the UK and the US, the pair could continue to climb towards resistance at 1.33562.

- Bearish scenario:** If the dollar continues to rise on global economic concerns and trade developments, and the BOE rate cut starts to put more pressure on the pound, the pair could test support at 1.32400.

### Conclusion

The GBP/USD pair is currently being influenced by contrasting economic factors. Traders should keep a close eye on developments regarding the US-UK trade deal and any new monetary policy indications from the BOE and Fed. In the current climate of uncertainty, cautious and well-informed trading strategies are recommended.