GBP/USD Price Analysis: The first upside target to watch is above 1.2800

• GBP/USD trades firmer near 1.2875 in Monday’s early European session. 
• The negative outlook for the pair remains in play, with bearish RSI indicator on 4-hour chart. 
• The first upside barrier is seen at 1.2919; initial support level is located at 1.2843. 

The GBP/USD pair trades on a stronger note around 1.2875 during the early European trading hours on Monday. The softer Greenback amid the hope of an interest rate cut by the US Federal Reserve (Fed) in September provides some support to the major pair. The US Federal Reserve (Fed) Interest Rate Decision will be to highlight on Wednesday, with no change in rate expected.

GBP/USD maintains a bearish outlook on the 4-hour chart. Meanwhile, the Relative Strength Index (RSI) holds below the 50-midline, indicating that further downside looks favorable. However, the uptrend would resume once the major pair decisive crosses above the key 100-period Exponential Moving Average (EMA). 

The upper boundary of the Bollinger Band at 1.2919 acts as an immediate resistance level for GBP/USD. A break above this level could pave the way to 1.2938, a high of July 24. Further north, the crucial hurdle will emerge at the 1.2990-1.3000 region, representing a high of July 12 and psychological mark. 

On the flip side, the first downside target for the pair is seen at 1.2843, the lower limit of the Bollinger Band. A breach of this level will see a drop to 1.2777, a low of July 9. The additional downside filter to watch is 1.2739, a low of July 4.  

GBP/USD 4-hour chart