GBP/USD Price Analysis: The potential resistance level will emerge at the 1.2700 mark
|- GBP/USD posts modest gains near 1.2683 in Tuesday’s early European session.
- The pair maintains a bullish outlook above the key EMA; RSI indicator lies above the 50 midlines.
- The first upside barrier will emerge at the 1.2700 mark; the initial support level is seen at 1.2640.
The GBP/USD pair remains capped under the 1.2700 barrier during the early European session on Tuesday. A testimony to the UK Treasury committee by Bank of England (BoE) Governor Andrew Bailey and other policymakers last week sparked speculation of a delay in rate cuts, which boost the Pound Sterling (GBP) and create a tailwind for the GBP/USD pair. The pair currently trades around 1.2683, up 0.01% on the day.
GBP/USD keeps the bullish vibe unchanged as the major pair is above the key 100-period Exponential Moving Average (EMA) on the four-hour chart. The upward momentum is backed by the Relative Strength Index (RSI), which lies above the 50 midlines, supporting the buyers for the time being.
The potential resistance level will emerge at the 1.2700 mark, portraying the confluence of the upper boundary of the Bollinger Band, a psychological round figure, and a high of February 26. A bullish breakout of this level will expose a high of January 31 at 1.2750. The additional upside filter to watch is a high of January 12 at 1.2785.
On the flip side, the first downside target for GBP/USD is seen at the 100-period EMA and the lower limit of the Bollinger Band at 1.2640. The key contention level for the major pair is located at the 1.2600–1.2605 region, representing the psychological mark and a low of February 21. A break below the latter will pave the way to a low of December 11 at 1.2535.
GBP/USD four-hour chart
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