GBP/USD Eyes 1.3700 as UOB Sees Cautious BoE and Strong UK Economy

The British Pound (GBP) is expected to maintain its upward momentum against the US Dollar (USD), according to United Overseas Bank's (UOB) latest technical analysis.

UOB's strategists note that the GBP/USD pair has been trading in a range, with support levels at 1.3550 and 1.3500. The bank advises that a clear break above 1.3700 could open the door for further gains.

The Pound's strength is driven by expectations of a cautious approach to interest rate cuts from the Bank of England (BoE) and resilient UK economic data, including better-than-expected GDP figures and a strong labor market.

In contrast, the US Dollar faces pressure from growing speculation that the Federal Reserve may begin easing policy later this year, narrowing the rate differential in favor of the Pound.