GBP/USD Price Analysis: Potential resistance level will emerge at 1.2700

• GBP/USD posts modest gains near 1.2680 during the European session on Tuesday.
• The pair maintains a bullish outlook above the key EMA; The RSI indicator is above the midline of 50.
• The first bullish barrier will emerge at the level of 1.2700; the initial support level is observed at 1.2640.

The GBP/USD pair remains limited below the 1.2700 barrier during the European session on Tuesday. Testimony to the UK Treasury Committee by Bank of England (BOE) Governor Andrew Bailey and other policymakers last week sparked speculation about a delay in rate cuts, boosting the Pound sterling (GBP) and created a tailwind for the GBP/USD pair. The pair is currently trading around 1.2683, up 0.01% on the day.

GBP/USD maintains the bullish trend, as it is above the 100-period exponential moving average (EMA) on the 4-hour chart. The bullish momentum is supported by the Relative Strength Index (RSI), which is above the midline of 50, supporting the buyers for the moment.

Potential resistance level will emerge at 1.2700, which represents the confluence of the upper boundary of the Bollinger Bands, a round psychological level, and the February 26 high. A bullish break of this level would expose the January 31 high at 1.2750. The other bullish filter to watch is the January 12 high at 1.2785.

On the other hand, the first bearish target for GBP/USD is the 100 EMA and the lower boundary of the Bollinger Bands at 1.2640. The key support level for the pair lies in the 1.2600-1.2605 zone, which represents the round level and the February 21 low. A break below this last level would pave the way towards the December 11 low at 1.2535.

GBP/USD 4-hour chart