Forex analysis - 2025-02-25 (22:54)

Forex data GBP/USD
Date : 2025-02-25
Opening : 1.26177
Higher up: 1.26777
Below: 1.26054
Closing : 1.26654

Economic news :
GBP/USD Forecast Turns Negative Amid US Inflation, Tariffs
Dollar Weakens Despite Hawkish Fed And Fresh Tariff Warnings
World Markets Trade On A Mixed Note

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

**Current trend:**

The GBP/USD pair showed moderate volatility over the course of the day, opening at 1.26177 and closing at 1.26654. The day's movement indicates slight upward pressure, with a high reached at 1.26777. However, the overall trend could be influenced by underlying economic factors.

**Impact of economic news:**

1. **Inflation in the US continues to be a crucial factor influencing the pair. High inflation could push the Fed to maintain or raise interest rates, making the dollar more attractive and putting downward pressure on the GBP/USD. In addition, fears of new tariffs could affect the global economic outlook, influencing demand for the dollar as a safe haven.

2. **The dollar weakens despite an aggressive Fed and warnings of new tariffs:** Although the Fed is taking a hawkish stance due to inflation, the dollar is weakening, which could be due to market expectations already built in or concerns about the negative impact of tariffs on the US economy. This weakening of the dollar offers support to sterling, contributing to the rise seen in the GBP/USD pair.

3. **Mixed global markets:** Mixed global markets reflect general uncertainty which could limit net directional moves in major currency pairs, including GBP/USD.

**Short-term forecasts:**

1. **Bullish scenario:** If the dollar continues to weaken and sterling receives support, we could see GBP/USD retest the 1.26800 resistance level. A break above this level could pave the way for further gains towards 1.27000.

2. **Bearish scenario:** If market sentiment shifts in favour of the dollar due to a reassessment of tariff risks or other economic factors, GBP/USD could move back towards support at 1.26200, or even test the day's low at 1.26054.

3. **Factors to watch:** Traders should keep an eye on developments in the tariff talks, US economic data, particularly inflation, and any comments from the Fed that could influence monetary policy expectations.

In conclusion, although the pair has shown some resilience, global economic uncertainties and monetary policy developments on both sides of the Atlantic will play a key role in determining the future direction of GBP/USD.