Pound's Gains Against Dollar Capped at Key Resistance Level

The British pound has been making gains against the US dollar in recent sessions, but analysts at UOB Group believe that its upside is likely to be capped at 1.3655.

This resistance level has previously acted as a ceiling for the pair, and UOB's Technical Outlook suggests that it may struggle to break above this mark in the near term.

The pound's advance is being supported by expectations of further interest rate hikes from the Bank of England, but the dollar has been underpinned by robust US economic data and hawkish comments from Fed officials.

As a result, traders should monitor the 1.3655 level closely, as a break above it could signal a stronger bullish trend for the pair.