Forex analysis - 2025-07-07 (09:00)

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:
For a complete analysis of the GBP/USD forex market on 7 July 2025, we need to look at the market data provided as well as the relevant economic news.

### Market Data Analysis

1. **The pair opened at 1.36250 and closed at 1.35990:** The pair opened at 1.36250 and closed at 1.35990, indicating a slight decline on the day. This could suggest selling pressure on sterling against the US dollar.

2. **High at 1.36570 and Low at 1.35720:** Intraday fluctuations show the pair peaking at 1.36570 and bottoming at 1.35720. This indicates moderate volatility, possibly due to the impact of economic news.

### Impact of Economic News

- Increasing trade tensions and tariffs in the US appear to have strengthened the US dollar. This is putting downward pressure on the GBP/USD pair, as a stronger dollar tends to weaken sterling in this currency pair.

- Despite the dollar's strength, US dollar sellers were quick to take positions, allowing the pair to recoup some of its intraday losses. This indicates a complex dynamic in the market, where investors are reassessing the risks associated with trade tensions.

- Focus on GBP/USD Bearishness:** Analysis suggests that bearish pressure remains a dominant factor, with the US dollar confirming its strength against the pound. This could be linked to expectations of divergent monetary policies between the Bank of England and the US Federal Reserve.

### Short-Term Forecasts

- If the US dollar continues to benefit from the support of trade tensions and monetary policies, GBP/USD could continue to fall, potentially testing the support level near 1.35720.

- Technical Rebound Scenario:** However, if US dollar sellers continue to dominate, a technical rebound could occur, taking the pair back towards the resistance levels around 1.36570.

- Influence of Upcoming Economic Data:** Investors will need to keep a close eye on upcoming economic releases in the US and UK, such as employment figures, inflation, and monetary policy decisions, which could influence the pair's future direction.

In summary, the GBP/USD pair is currently under pressure from the strength of the US dollar, fuelled by trade tensions. However, the buying and selling of the US dollar is creating a complex dynamic, and the next few days will be crucial in determining whether the downtrend continues or whether a rebound is possible.