GBP/USD Price Analysis: The initial support level is located at 1.2610

The GBP/USD pair holds positive ground near 1.2628, snapping the two-day losing streak on Monday. The modest recovery of the major pair is backed by the dovish comments from Federal Reserve (Fed) Chairman Jerome Powell. The Fed’s Powell stated on Friday that recent US inflation data was in line with expectations and that the Fed's goal for the interest rate this year remained unchanged. The US central bank maintains projections of three rate cuts this year, and traders anticipate the first rate cuts will begin in the June meeting.

According to the four-hour chart, GBP/USD maintains the bearish outlook unchanged as the major pair is below the key 50-period and 100-period Exponential Moving Average (EMA) on the four-hour chart. Additionally, the downward momentum is supported by the Relative Strength Index (RSI), which lies below the 50 midlines, suggesting the path of least resistance level is to the downside. 

The first upside target for GBP/USD is seen near the confluence of the upper boundary of the Bollinger Band and the 50-period EMA at the 1.2640–1.2645 zone. A decisive break above the mentioned level will expose the 100-period EMA at 1.2671. Further north, the next hurdle is located at a high of March 18 at 1.2746, and finally the 1.2800 psychological level. 

On the flip side, the lower limit of the Bollinger Band at 1.2610 acts as an initial support level for the major pair. Any follow-through selling will see a rally to a low of March 22 at 1.2575. The contention level to watch is a low of February 14 at 1.2535, and finally at the 1.2500 round figure. 

GBP/USD four-hour chart