GBP/USD Falls to Near 1.3445 Amid Rising Tensions

The GBP/USD currency pair weakened to near 1.3445 in Friday's early European session, as heightened Middle East tensions and rising global oil prices supported a safe-haven currency like the US Dollar (USD) against the British Pound (GBP).

The constructive outlook for the pair remains intact above the 100-day Simple Moving Average (SMA), with bullish Relative Strength Index (RSI) momentum. The initial support level to watch is 1.3400, while the first upside barrier is located at 1.3515.

The Bank of England (BoE) is widely expected to keep borrowing costs on hold for a fifth straight meeting, as softer UK inflation eases pressure. Analysts at Brown Brothers Harriman note that the recent moderation in price pressures allows policymakers to maintain the current stance without rushing to adjust rates.