Forex analysis - 2025-05-02 (21:55)

Forex data GBP/USD
Date : 2025-05-02
Opening : 1.32713
Higher up: 1.33306
Below: 1.32604
Closing : 1.32650

Economic news :
Markets React To Hints Of Trade Talks Between U.S. And China
Futures Rise Ahead Of Payrolls After China Hints At Trade Talks
Earnings Boost Market Sentiment

Detailed analysis:
To analyse the GBP/USD pair on 2 May 2025, it is important to consider both the technical data and the fundamental factors that influence market movements.

### Technical Analysis

1. **Movement of the Day:**
- Opening:** 1.32713
- Highest:** 1.33306
- Lowest:** 1.32604
- Closing:** 1.32650

The GBP/USD pair fell slightly over the course of the day, closing at 1.32650 after opening at 1.32713. The day's high of 1.33306 indicates that there was some initial upward pressure, but this was not sustained throughout the session.

2. **Current trend:**
- The market appears to be in a consolidation phase with a slight downtrend, given that the close is close to the day's low. This could indicate persistent selling pressure.

3. **Technical indicators:**
- Support and resistance:** The immediate support level is around 1.32600, while resistance is close to 1.33300. A break below support could reinforce the downtrend.
- Moving Averages:** If available, short-term moving averages below the current close will indicate increased downward pressure.

### Fundamental Analysis

1. **Economic News:**
- Indications are that the market is reacting positively to hints of trade talks between the US and China. These talks could ease trade tensions, which is generally positive for global financial markets and could boost demand for risk assets.
- Rising futures ahead of the US jobs reports suggest optimism about the health of the US economy, which could strengthen the US dollar in the short term.

2. **Potential Impact:**
- Trade talks between the US and China could have a positive impact on overall market sentiment, but their direct effect on GBP/USD will depend on the progress of the negotiations and the reactions of the respective central banks.
- Rising corporate profits are boosting market sentiment, which could indirectly support sterling if it reduces global economic uncertainty.

### Short-Term Forecasts

1. **Possible scenarios:**
- Bullish scenario:** If trade talks progress positively and US economic data is in line with expectations or better, the pair could test resistance at 1.33300.
- Bearish scenario:** A break below support at 1.32600 could see the pair fall to lower levels, especially if US data strengthens the dollar.

2. **Events to watch out for:**
- Major economic announcements, notably the US employment figures.
- Progress in trade talks between the United States and China.

In conclusion, although general sentiment is positively influenced by trade talks and corporate earnings, GBP/USD is currently showing signs of technical weakness. Traders should keep a close eye on key support and resistance levels as well as upcoming economic news.