Forex analysis - 2025-07-07 (03:55)

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:
**Full analysis of the GBP/USD Forex market**.

**Current trend:**

The GBP/USD pair is showing a downward trend, opening at 1.36250 and closing at 1.35990, marking a decline for the day. The day's low of 1.35720 indicates continued downward pressure, although the high of 1.36570 shows that there have been attempts to recover. This dynamic reflects a degree of volatility, but with selling pressure dominating.

**Impact of economic news:**

Recent economic news has highlighted the strength of the US dollar, fuelled mainly by growing trade tensions in the United States and the application of new tariffs. These factors tend to reinforce the dollar as a safe-haven asset, putting downward pressure on the GBP/USD pair. The news also mentions that sellers of the US dollar are coming forward quickly, which may indicate increased volatility with market movements reactive to economic news.

**Short-term forecasts:**

1. **Bearish scenario**: If US trade tensions continue to intensify and the US dollar remains strong, GBP/USD could continue its downward trend. Support could be tested around the 1.3550 level, or even lower if selling pressure increases.

2. **Bullish scenario**: A possible easing of trade tensions or favourable economic news from the UK could temporarily reverse the trend. In this case, the pair could bounce back towards resistance at 1.3650, with a potential return to 1.3700 if the bullish momentum holds.

3. **Increased volatility**: Given current economic conditions, volatility could remain high, with rapid swings in both directions. Traders need to keep a close eye on economic news and technical indicators to navigate this uncertain market.

In conclusion, the GBP/USD pair is facing downward pressure from the strength of the US dollar, exacerbated by trade tensions. Traders should keep a close eye on economic developments to identify trading opportunities.