GBP/USD traded in a narrow range below the mid-1.3600s, with sterling broadly flat against the dollar as firmer US Treasury yields supported the greenback. Markets are weighing expectations that the Federal Reserve may keep interest rates higher for longer against the Bank of England’s cautious approach to potential rate cuts. Resilient US economic data, cautious Federal Reserve commentary and Middle East tensions have supported the dollar through higher yields and safe-haven demand. Sterling has found some support from domestic UK data and was slightly firmer against the euro, although concerns about the UK’s fiscal position, inflation outlook and economic growth have limited gains. Immediate support remains at 1.3600 and 1.3550, with resistance at 1.3650 and 1.3700. Traders will watch UK inflation data, the Bank of England’s policy meeting, US inflation data, comments from Fed Chair Jerome Powell, central-bank commentary and geopolitical developments for the next directional move.