GBP/USD Price Analysis: The first upside barrier is seen at 1.2660

• GBP/USD holds positive ground near 1.2640 on the softer US Dollar (USD).
• The pair maintains a bullish outlook above the key EMA; RSI indicator stands above the 50 midlines.
• The first resistance level will emerge at 1.2658; the initial support level is seen at 1.2624.

The GBP/USD pair trades on a stronger note below the mid-1.2600s during the early European section on Thursday. Investors await the UK S&P Global/CIPS PMI report for February. The manufacturing PMI figure is expected to improve to 47.5 in February from 47.0 in January, while the Services PMI figure is projected to drop to 54.1 in January versus 54.3% prior. At press time, GBP/USD is trading at 1.2640, up 0.06% on the day. 

From a technical perspective, GBP/USD remains in a bullish mood as the pair is above the 100-period Exponential Moving Average (EMA) on the four-hour chart. Additionally, the Relative Strength Index (RSI) lies above the 50 midlines, supporting the upward momentum for the pair. 

The first upside barrier for the major pair will emerge around the upper boundary of the Bollinger Band at 1.2660. A decisive break above this level will pave the way to a high of February 20 at 1.2688. Further north, the next hurdle is located at a high of January 30 at 1.2721, en route to a high of January 31 at 1.2750. 

On the downside, the initial support level for GBP/USD is seen at the 100-period EMA at 1.2624. The key contention level to watch is the confluence of the psychological round mark and a low of February 21 at the 1.2600–1.2605 region. A breach of this level will see a drop to the lower limit of the Bollinger Band at 1.2575, followed by a low of December 11 at 1.2535. 

GBP/USD four-hour chart