The British Pound (GBP) is trading in a tight range below the 1.3400 level against the US Dollar (USD) on Wednesday, as renewed geopolitical tensions in the Middle East and cautious positioning ahead of key US inflation data weigh on the currency pair. Reports of heightened military activity near the Strait of Hormuz and fresh diplomatic friction between Iran and Western powers have pushed investors toward traditional safe-haven assets. The US Dollar has benefited from this risk-off sentiment, limiting GBP/USD’s upside despite relatively resilient UK economic data.