GBP/USD Weakens Below 1.3450 Amid Rising Tensions
The GBP/USD pair is trading lower around 1.3445 during early European hours on Friday, as heightened Middle East tensions and rising global oil prices support a safe-haven currency like the US Dollar.
The Michigan Consumer Sentiment Index will be published later in the day, which may provide additional market direction.
Financial markets have priced in a high likelihood of the Bank of England keeping borrowing costs on hold, with an outside chance of a hike. Analysts at Brown Brothers Harriman argue that softer UK inflation has eased pressure on policymakers to raise rates.
In technical analysis, the daily chart shows a modest bullish bias for GBP/USD as spot remains above its 100-day simple moving average and the Bollinger middle band. Immediate support is seen around 1.3400, while deeper cushion emerges at the lower Bollinger band near 1.3265.