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The GBP/USD pair remains near 1.3420 during European trading hours on Friday, showing a modest rebound but still on track for a second consecutive weekly decline. Rising geopolitical tensions in the Middle East, coupled with anticipation of the upcoming US Non-Farm Payrolls (NFP) report, are weighing on the pound. Analysts note that Middle East instability has historically impacted global risk appetite, indirectly affecting currency markets. The NFP data, scheduled for release later this week, could provide clarity on the US labor market's health and influence the Federal Reserve's monetary policy trajectory. Traders are closely monitoring these factors, as any signs of prolonged Middle East conflicts or a weaker-than-expected NFP report might trigger further GBP/USD volatility. The pair's ability to hold above 1.3400 will be critical in determining short-term direction, with technical indicators suggesting potential support levels near 1.3350.
