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The GBP/USD pair has declined for three consecutive days, trading near 1.3350 as Middle East tensions escalate. Geopolitical risks from the conflict are fueling safe-haven demand for the US dollar, while the UK's economic data remains mixed. Recent UK inflation figures showed a slight easing, but weak manufacturing output and stagnant wage growth have pressured the pound. The pound's weakness highlights its sensitivity to global risk-off sentiment. As the Middle East conflict intensifies, investors are rotating into USD assets, impacting GBP/USD dynamics. This trend could persist if diplomatic efforts fail to de-escalate tensions. Traders should monitor central bank interventions and UK economic indicators for potential reversals. For forex traders, the 1.3300 level now serves as critical support. A break below this could target 1.3200, while a rebound above 1.3500 might signal short-term stabilization. The Bank of England's policy stance and US Fed rate expectations will remain key drivers in the coming weeks.
