GBP/USD Price Analysis: The immediate upside barrier is seen at the 1.2800 mark, BoE rate decision looms

• GBP/USD trades on a stronger note near 1.2790 ahead of the BoE rate decision.
• The pair keeps the bullish vibe above the key EMA; RSI indicator lies above the 50 midlines.
• The immediate upside barrier is seen at the 1.2800 mark; the initial support level is located at 1.2735.

The GBP/USD pair holds positive ground below the 1.2800 psychological barrier during the early European session on Thursday. The weaker US Dollar (USD) following the Federal Reserve interest rate decision provides some support to the major pair. GBP/USD currently trades around 1.2790, up 0.04% on the day.

The US Fed held the rate steady at 5.25–5.50% at its March meeting on Wednesday, with the median dot plot for 2024 unchanged from the 75 basis points (bps) of cuts reported in the December projections. Investors will closely watch the Bank of England (BoE) monetary policy meeting on Thursday, with no change in rate expected.

According to the four-hour chart, GBP/USD resumes its upside as the major pair bounces above the key 100-period Exponential Moving Average (EMA). Additionally, the Relative Strength Index (RSI) lies above the 50 midlines, supporting the buyers for the time being.

The immediate upside barrier for the major pair is seen near the confluence of the upper boundary of the Bollinger Band and a psychological level of 1.2800. A decisive break above the latter will see a rally to a high of March 14 at 1.2823, en route to a high of March 11 at 1.2862, and finally the 1.2900 round mark.

On the other hand, the initial support level is located at the 100-period EMA at 1.2735. The additional downside filter to watch is a low of March 20 at 1.2684. Any follow-through selling will see a drop to the lower limit of the Bollinger Band at 1.2668.

GBP/USD four-hour chart