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The GBP/USD pair fell to 1.3350, with the British pound facing pressure near three-month lows against the dollar. Market participants are not anticipating a rate cut by the Bank of England (BoE) in March, despite easing dollar pressure due to geopolitical developments, including Iran's reported willingness to discuss ending its conflict. The pound's weakness reflects broader concerns about the UK's economic outlook and inflationary pressures. For forex traders, the BoE's policy trajectory remains critical. A delayed rate cut could weigh on the pound, while any unexpected tightening might trigger volatility. Meanwhile, geopolitical tensions in the Middle East, particularly involving Iran, could indirectly influence USD demand. Investors should monitor BoE's March 16 policy decision and Iran's diplomatic moves for potential market-moving cues. Looking ahead, the GBP/USD pair may remain range-bound until clearer signals emerge from BoE or economic data. Traders should also assess how global risk appetite and energy prices impact the dollar's strength. For Gulf investors with exposure to UK assets, the BoE's stance will be a key factor in hedging strategies.
