Forex analysis - 2025-07-07 (12:49)

Forex data GBP/USD
Date : 2025-07-07
Opening : 1.36518
Higher up: 1.36574
Below: 1.35749
Closing : 1.36200

Economic news :
Tariff Uncertainty Weighs on Equities as Gold, Oil Slip While US Dollar Rebounds
European Markets Seen Opening Mixed On Monday
Monday open levels, indicative FX prices, 07 July 2025

Detailed analysis:
For a full analysis of the forex market for GBP/USD on 7 July 2025, let's look at the key elements and possible implications:

### Current trend
The GBP/USD pair opened at 1.36518 and closed at 1.36200, showing a slight fall over the course of the day. The low was 1.35749 and the high was 1.36574, indicating moderate volatility. The overall trend for the day appears to be slightly bearish.

### Impact of economic news
The economic news includes tariff uncertainty weighing on equities, as well as a pullback in gold and oil, while the US dollar is showing signs of rebounding. These factors suggest that investors are seeking refuge in the US dollar because of economic uncertainty, which could explain the downward pressure on sterling against the dollar.

1. **Price uncertainty**: This creates risk aversion on the markets, encouraging investors to turn to assets deemed safer, such as the US dollar.

2. **Decline in commodities** : The fall in gold and oil may also indicate a reduced appetite for risk, further strengthening demand for the dollar.

3. **European markets**: The mixed opening of European markets could reflect similar concerns, also impacting sterling.

### Short-term forecasts
There are several possible scenarios for future sessions:

1. **Continued downward pressure**: If economic uncertainty persists, sterling could continue to weaken against the dollar, potentially testing new lows around 1.3550.

2. **Stabilisation or technical rebound**: If positive news or clarification on tariff issues emerges, there could be a technical rebound, with the pair retesting resistance levels around 1.3650.

3. **Exogenous factors**: Other unforeseen economic or geopolitical news could also influence the direction of the pair, making it important to monitor developments in real time.

### Conclusion
The GBP/USD pair is trending slightly lower, influenced by macroeconomic factors unfavourable to sterling. Investors should remain attentive to news on tariff policies and key economic indicators, while monitoring technical levels for short-term trading opportunities.