Forex analysis - 2025-07-07 (13:52)

Forex data GBP/USD
Date : 2025-07-07
Opening : 1.36250
Higher up: 1.36570
Below: 1.35720
Closing : 1.35990

Economic news :
The US dollar sellers quickly wade in again, cable completely recovers
Global FX Market Summary: Escalating US Trade Tensions and Tariffs, US Dollar Strength, Currency Fluctuations 7 July 2025
GBP/USD: Downside in Focus With US Dollar Strength Confirming Pressure

Detailed analysis:
### Complete Forex Market Analysis - GBP/USD

#### Market Context
On 7 July 2025, the GBP/USD pair opened at 1.36250, reached a high of 1.36570, and a low of 1.35720, before finally closing at 1.35990. It was a day of notable fluctuations, mainly influenced by the growing trade tensions involving the United States, as well as the persistent strength of the US dollar.

#### Current Trend
The current trend in the GBP/USD pair is showing downward pressure. The fact that the pair closed below its opening level and close to its low for the day indicates GBP weakness against the USD. This trend is being reinforced by the overall strength of the US dollar, fuelled by heightened trade tensions which are driving investors to seek refuge in perceived safer assets, such as the dollar.

#### Impact of Economic News
Trade tensions between the US and other countries continue to dominate the global economic landscape. Concerns about tariffs and protectionist trade policies are strengthening the US dollar, as investors perceive this currency as a safe haven. This strength of the dollar puts further pressure on the GBP, especially as the UK could be indirectly affected by these tensions because of its own trade relations with the US and the EU.

#### Short-Term Forecasts
- Bearish scenario:** If trade tensions continue to escalate and the US dollar maintains its strength, the GBP/USD pair is likely to fall further. Key support levels around 1.35700 will be crucial; a break below this could pave the way for further declines.

- Bullish scenario:** In the event of an easing of trade tensions or positive economic data from the UK, we could see a technical rebound. However, resistance around 1.36570 will have to be breached before a more sustained recovery can be envisaged.

- Technical Considerations:** Traders should watch technical indicators such as moving averages and the RSI for signals of trend continuation or reversal. An oversold RSI could signal a potential short-term technical rebound.

To sum up, the GBP/USD pair is currently under pressure mainly because of the strength of the US dollar linked to trade tensions. Investors should keep a close eye on geopolitical and economic developments, which will continue to influence the direction of the pair in the sessions ahead.