The pound is expected to continue its rally due to a stronger-than-expected UK economy and the Bank of England’s cautious approach to cutting interest rates. Analysts at Bank of America and Barclays predict the pound could reach USD1.35 by year-end, while Goldman Sachs sees it hitting USD1.40 within 12 months. Sterling’s gains have been driven by resilient economic data and higher services inflation, which suggest the BoE will cut rates more slowly than the US Fed or ECB. However, some investors warn that the pound may soon face resistance.