GBP/USD Price Analysis: Holds positive ground above 1.2200, the next contention is seen at 1.2170

The GBP/USD pair holds positive ground for the second consecutive day during the early European session on Friday. As widely expected, the Bank of England (BoE) decided to maintain the interest rate unchanged at 5.25% on Thursday. During the press conference, BoE Governor Andrew Bailey stated that an additional rate hike could be appropriate, but Bailey disregarded rate cuts. The major pair currently trades around 1.2208, gaining 0.08% on the day.

According to the four-hour chart, GBP/USD holds above the 50- and 100-hour Exponential Moving Averages (EMAs), which supports the buyers for the time being. Furthermore, the Relative Strength Index (RSI) holds above 50 in bullish territory, suggesting the path of least resistance is to the upside.

That being said, the immediate resistance level for the major pair will emerge at the confluence of the upper boundary of the Bollinger Band and a high of October 16 at 1.2217. A decisive break above the latter will see a rally to 1.2288 (high of October 24). Further north, the next barrier to watch is 1.2300 (round figure), en route to 1.2337 (high of October 11).

On the downside, the 100-hour EMA at 1.2170 acts as an initial support level. The additional downside filter will emerge near the lower limit of the Bollinger Band at 1.2115. The key contention level is located at the 1.2095–1.2100 area, portraying a psychological mark and a low of October 20. A breach of the level will see a drop to a low of October 26 at 1.2066.

GBP/USD four-hour chart