GBP/USD Capped by Resistance at 1.3555, UOB Says

The pound's upside against the US dollar is currently limited due to resistance at around 1.3555, according to analysts at United Overseas Bank (UOB). This key barrier may prove difficult for the pair to break through without fresh catalysts.

While the pound has shown some strength, its gains are being capped by expectations of further rate hikes from the Bank of England and a resilient US economy. The dollar's strength is also being driven by higher yields in the US.

UOB's technical analysis suggests that as long as GBP/USD stays below 1.3555, the immediate bias remains neutral to slightly bearish. A clear break above this level could open the door for further upside, but until then, the pair is likely to trade within a range.