GBP/USD Eyes UK GDP Data as US-Iran War Fears Dominate Markets

GBP/USD faces a pivotal session as traders await the monthly UK GDP report for January, with consensus expecting a 0.2% expansion. However, the data release is unlikely to shift Bank of England policy expectations or significantly move the pair, as market attention remains firmly locked on the escalating US-Iran conflict and its impact on surging oil prices. The geopolitical crisis has fueled broad safe-haven demand, strengthening the US dollar across the board and pressuring risk-sensitive currencies. Rising crude prices add an additional layer of complexity, threatening to reignite inflationary pressures globally and potentially delaying central bank easing cycles. For GBP/USD traders, the UK GDP print could provide a short-term catalyst if it surprises significantly to the upside or downside, but the dominant driver remains geopolitical risk sentiment. Traders should monitor oil price developments closely, as further escalation could trigger additional USD strength and push cable lower toward key support levels.