Forex analysis - 2025-02-28 (20:51)

Forex data GBP/USD
Date : 2025-02-28
Opening : 1.26001
Higher up: 1.26220
Below: 1.25589
Closing : 1.25740

Economic news :
Cable falls to a ten-day low in a sharp turn as alliances begin to crumble
Trade Jitters, Tech Rout And PCE Worries Hit Market Sentiment
ForexLive European FX news wrap: Dollar remains steady going into February home straight

Detailed analysis:
Forex market analysis for the GBP/USD pair on 28 February 2025 shows a day of moderate volatility and significant influences from the economic news. Here is a detailed analysis:

### Current trend

The GBP/USD pair opened at 1.26001 and closed at 1.25740, indicating a slight decline over the course of the day. The high of 1.26220 and the low of 1.25589 show a relatively small range of movement, suggesting consolidation or hesitation in the market as to the direction to take. Closing below the opening level reflects downward pressure, probably amplified by external factors.

### Impact of economic news

1. **Cable falls to a ten-day low**: This news indicates weakness in the GBP, probably due to political or economic tensions in the UK, adversely affecting investor confidence.

2. **Trade Jitters, Tech Rout And PCE Worries** : Worries about global trade, disruptions in the technology sector and concerns about the US Consumer Expenditure Price Index (PCE) have created a climate of uncertainty. These factors tend to strengthen demand for the US dollar, which is seen as a safe haven, putting further pressure on the GBP/USD pair.

3. **Dollar remains steady** : The stability of the US dollar, even in the face of economic uncertainty, suggests relative confidence in the US economy, further supporting the dollar's position against sterling.

### Short-term forecasts

1. **Bullish scenario**: If positive news emerges regarding the UK's political or economic alliances, this could strengthen sterling, pushing the pair towards the resistance level around 1.26220.

2. **Bearish scenario**: If economic concerns persist, particularly regarding the global trade situation and the possible impact on the UK economy, the pair could continue to fall, potentially testing support around 1.25589 or even lower.

3. **Neutral scenario**: In the absence of any significant news, the pair could continue to trade in a narrow range, oscillating between current support and resistance levels.

### Conclusion

Investors should keep a close eye on political and economic developments in both the UK and the US, as these factors are likely to continue to influence the direction of GBP/USD. Particular attention should be paid to major economic announcements and speeches by monetary policy makers, which could offer further clues as to future direction.